They have potential, but I think they're doing too much. They're turning Home into a Sims Online type of thing more or less with the depth they appear to be taking it to.
Ya, it's cool that you can walk around wearing an achievement/whatever, but that requires actually walking around and showing it off.
Lists of accomplishments go over much better IMO than a room that someone has to visit. With how the Live experience is set up it plays off so much competition with people that it is hard not to be successful.
Those who are not achievement whores strive to get achivements cause its the new way to 'finish a game'. Even if they don't want to compare to others, 'that next 20 points' is only so far away and then ooh, you're at 1000, or 5000! Carrots on sticks 'for the win' (man i hate that phrase).
I think Home looks great, and I think it will be successful and fun to play with, but right now they're showing too much eyecandy, and its evolving into more and more when it really should be a little more secondary to the games that people should be wanting to dominate the system for. This is one of those things that SHOULD be a marketing bullet point, and not a whole lot more IMO.
This will either be very very successful and revolutionary, or just 2 more lines in the Playstation wikipedia entry in a few years.