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I agree that the success of Home looks rather uncertain at this point. BUT.. it is getting quite a bit of media attention, it will offer a refreshing way to interact ( b/c most people havent tried 2nd life or really gotten into MMORG's yet) , the theatre experience will bring quite a bit of people, and Sony can always upgrade the games that it will offer in the future.

It could do things like......

-put in a "casino" with funny money games
-put in trivia games which usually are all about interaction
-and a lot of other things that I can't just come up with off the top of my head =)

So, we could see some improvements and new features in home which will attract more people.  I also think that Sony should put advertising in from different companies as well, for advertising $$$, instead of just advertising Sony's own electronics, movies, blu ray, etc etc etc that gets old. 

 The core audience is going to be about 14-23, so Maxim magazine, coca-cola, tag body spray, etc would add some diversity to the ads instead of forcing Home users to look at the same kinds of things ALL the time.

 Sony should also at least think about offering a free headset with all PS3's that will work with games like warhawk or Socom or whatever as well as Home.  It makes sense to me for them to include all hardware needed at the time of purchase rather than making consumers buy something and figure out how to get it set up and so forth.