I was pretty bummed when I didn't get one. Front Row is pretty terrible anyways. Still, the remote is 'cool' and was something I always was jealous of when I saw them at my friend's houses in middle/high school. With all that being said - I'd still never buy one.
To Apple, they probably view Front Row as redundant. If people actually used/relied on it (instead of all of the other media center apps, which in my opinion are WAY better) - they probably think they can coax them into buying the Apple TV easier.