I think it's a facinating concept, and if Sony pull it off, it will work very well.
Home gives the player the opportunity to create a visual representation of themselves amongst the community that goes far beyond a simple gamertag or avatar.
I also see Home as being a constant source of amusement on a personal level. I'll be running around the streets/indoor areas naked (well as much as it allows) and dancing.
Furthermore it seems like a lot of the players in the beta really enjoyed it, so I think PS3 owners have something to look forward to.