If a consumer is comparing Time Capsule to other options, "server grade" is clearly misleading. Other USB hard drives (ie. My Book, LaCie Porsche, etc) don't stipulate "server-grade"; and if someone was to actually research hard drives, they'll clearly see that there are two classes of hard drives, the normal kind (ie. Deskstar) and the enterprise server kind (ie. Ultrastar).
At that point, the consumer, trying to figure out which is the best deal, would reasonably assume that "server-grade" meant Apple was using the "better" kind of hard drive and not just a normal one, since they're going to the trouble of specifying it... at which point Time Capsule looks like a better deal. The 1TB Ultrastar costs $350 vs. the Deskstar's $270 (at Newegg.com) making Time Capsule look like it's getting $80 of additional value, which could sway someone that was considering going the cheap route of a standalone USB drive.
I don't see how anyone (except sycophants still wrapped in the RDF) could not see that that's misleading at the very least. Whether or not the higher-grade drive is worth the extra 80 bucks is irrelevant, the point is it looks that there's additional value that you're actually not receiving. Is it worth all the whining? Maybe, maybe not, but certainly when a company that people admire engages in petty deception and then engages in word parsing, it becomes less admirable. Which explains why there's so much complaining from those that are disappointed from their "hero", and so much rabid defense from those that don't want to admit their "hero" is imperfect.
In this case, Apple's "Server-grade" seems in the spirit of Microsoft's "Vista-capable". Perhaps technically accurate, but misleading if you look at it with a common sense point of view.
