I've been using the Magic Mouse since January and don't have any of the issues you mention that you or he had. I'm guessing he just doesn't use it normally and wasn't use it. There was definitely a small learning curve with it, but once learned, the thing is the best mouse I've ever used, and I wish I could have one at work because it's easier.
As for "flipping uncontrollably," I think we're looking at unfinished software here, combined, again, with a NERVOUS and NEW Magic Mouse user.
You have to be joking. The VP of Mac OSX is a 'new user' to the magic mouse? (The mouse that ships STANDARD with new macs?) It's like you think he was just surprised with the fact that he would have to demo with the mouse a day in advance or something.
Sure, let's just chalk it up to him being "nervous"
I always amazes me that people are rarely willing to actually give things some time. If it doesn't do exactly what they expect right out of the box, "that's it, it's going back!" It can't be that it might just take some time to get used to. I realize Apple is known for "it just works" products but sometimes even "just works" takes a bit of time to get used to.
Hey, if you like fiddling with a $70 mouse and hope to build 'muscle memory' over months of training, more power to you. I actually do expect a mouse to work like I expect right out of the box. What a concept!