Microsoft is probably aiming for the market of older people who shoot home videos on their digital camera and want a site they can understand -- to hell with unneeded functionality. I think there is a large market of people out there and I think that Microsoft is attempting to enter the online video market through this demographic.
I think this demographic is actually just getting smaller, as the people without computers in their childhood slowly leave the market... Sure many are still there now, but is it forward thinking to market just to them?
