Actually, it does much LESS than an Echo does: There is no third party integration, there's no free software development for this thing, it only understands English.
The Echo... Also supports Spotify, TuneIn, multiple "real" radio station (as in actual Radio Stations that also have streams on the web), it has "skills" for a daily growing amount of non-music related other services (I can, for example, plan my train rides with the Deutsche Bahn with it). Yeah, and Alexa is fluent in German. And she can read eBooks to me in German and English as well.
The HomePod, on the other hand, is a 350 bucks, voice enabled speaker for Apple Music.
Apple Music customers will buy this speaker, sure, so it will be a commercial success and will probably serve that specific target audience quite well. Outside the realm of Apple Music, however, there is zero reason to buy HomePod and people are better off with a device with Amazon Alexa, Google Assistant or even Microsoft Cortana in it.
Your comments are right on point.
My family has:
iPhones = check
iPads = check
Macbook Pro = check
iPods = check
Apple Watch = nope
HomePod = nope