The delay isn't necessarily a bad thing. I think the original vision of Home was basically a cable TV channel for gaming - there was way too much talk of ads, sponsors, and corporate junk. They ran the beta, and must have realized that people don't want another cable channel. They want a non-corporate, non-sponsored community of other gamers, with minimal ads, customizable services, and lots of user interaction.

How to make money off this? Create low-cost, high-volume services which you don't necessarily need, but can download for a small fee. Think iTunes, only in 3D. I think this is why Sony Online Entertainment, which has lots of painfully-acquired experience running MMOs, was brought into the gaming fold recently (originally they were part of Sony's film division).

How can a virtual chat room be too ambitious?