Yeah, I think I kind of agree with you. Although the simpler look is pretty cool, with all of the features you mentioned, I think it would be kind of hard to pull off.
But who knows??
It may look cool, but is not as efficient an interface. With a touch based UI, you simply touch the app you want- 1 click/command/whatever, and you're there.
With the FrontRow interface, you gotta scroll until you find the app you want, then select it. FrontRow uses this because of the Apple Remote. It's nice for what it is, but not the optimal solution for all interfaces.