Rory, don't worry about the edits. It's only natural that a video that comes out on the day of the announcement cannot reveal everything. In fact, I'm pretty sure there are questions/answers you will not be allowed to publish even post-launch. It's a commercial company with trade secrets, which help them outcompete the competitors. So?
The video was really an amazing source of information on what you can do with this thing, and the edits were sort of funny.
Regarding the target audience, my father in law (+65) wants one (let me clarify that: he needs one and knows it).
My own home definitely need one (count me on the Sam side), but I'm actually pretty sure my wife will be the one working mostly with it (and she's not a geek). And I'm excited to rid myself of work I really don't want to do.
My brothers with teenage children were going through the roof when I told them about Home Server.
My family (incl inlaws) wants 5 home servers, counting only the early adopters, provided that Windows XP is sufficient on client PCs. 5 of 13 households isn't bad, so I don't understand what this "lack of target audience" is about.
But just release it to the European market in time for 2007 holiday shopping, and we'll see what happens.