Based on the comments on this article, and the linked article itself, it seems like no one even has a clue what Windows Home Server is/does. Everyone seems to be concentrating on the media aspects, but according to many of the other articles regarding Windows Home Server available on the web, I think the media serving capabilities are a rather minor feature.

The true power (yes, to me Windows Home Server sounds very powerful) of this product is how easy and safe it will make data storage. Windows Home Server will automatically back up each PC on your home network every night. It will be able to restore an entire system or just specific files. It will keep redundant copies of your valuable data (digital photos, financial records, email, etc). If you need additional storage space, just buy a drive and install it--it will automatically be recognized and added to your storage pool.

And here's the real key: it will be dead simple. Pretty much a plug and play solution. The hardware will be completely headless (no keyboard/mouse/monitor). You just plug it into your network and install the client software on each PC in your network.

I feel Windows Home Server is the most exciting consumer product announced at CES. Yes, there are still a lot of people who may not need this product, but I think there is a lot of value for a lot of people. Anyone with a home network is going to want this product (or one with similar functionality).

For a lot of people, this product will have a greater impact (and be more important) than Vista itself.