Windows Home Server release issues

HP's MediaSmart Server has been pushed back.
(Credit: CNET)When last we left Microsoft's Windows Home Server software, it was off to manufacturing and we expected to see WHS-equipped hardware show up at our doorstep shortly thereafter. After a post on Microsoft's official Home Server blog, we get the company line as to why we haven't seen HP's MediaSmart Server yet. As follows:
"We've identified a number of ways to make the product even better since the initial release. As with most Microsoft products, updates to Windows Home Server will be automatically available throughout the lifecycle of the product, and the WHS team is working on an update that will be available in September. These updates will enhance the usability and improve the out-of-the-box experience of home server solutions. Additional updates will occur over the lifespan of the product as we receive feedback from the user community, our hardware partners, and software partners. Microsoft's current plan is to make this update available as part of the monthly Windows Updates process in September.
HP has decided to include these first software updates in their MediaSmart Server. Both HP and Microsoft believe that these updates are in the best interest of potential customers and will ensure the best out-of-the-box experience. All of our Windows Home Server partners and customers will automatically receive the update once posted to Windows Update."

Will Velocity Micro brings its Home Server to market first?
(Credit: Velocity Micro)The post doesn't mention the other Windows Home Server hardware partners, like Medion, Gateway, La Cie, and Velocity Micro. I assume they're all now weighing whether it's worth coming first to market against possible fallout from shipping with enough known issues to slow down a competitor. Any want to enlighten us as to the specific issues? Our experiences with a few WHS betas were fine, but then we didn't qualify our test bed to move 100,000 units.

#1 Security vulnerabilities open up the server to malware infections. Even with the latest security updates and antivirus and firewall software, crackers and malware writers can gain access to the server and take control of it. This is because it is based on Windows technology, which itself is flawed horribly when it comes to security. Chances are the users won't monitor it or not have time to monitor it and not notice it has been compromised until it is too late.
#2 Hardware lock in. You cannot buy the software for Windows Home Server without being locked into a hardware box that it is already installed on. This takes away the user's freedom to choose any hardware box he or she wants the software on. If you want to upgrade the server, you have to buy a new server with Windows Home Server installed on it, instead of just buying a new box and migrating Windows Home Server over to it and activating the license as a hardware change.
#3 The price is just too expensive for the average person to afford one of these boxes. It may be cheaper for them to buy a copy of Windows XP or Windows Vista Business Edition on a spare box and do file sharing and print sharing from the spare box they already own. It is even cheaper to just download a copy of Linux and run SAMBA for file and print sharing abilities with Windows systems.
#4 While the box is guaranteed, guarantees are usually given to pieces of crap hardwares that usually have a high defect rate, and there is a 30% or higher chance of having to return something for repair or replacement. If you bought the Windows Home Server mail order, that means mailing the box back to the OEM to have it fixed if you cannot find a local dealer to fix it for you. Are we to expect that a Windows Home Server would be as reliable as those $5000 Blade Servers out there that run Windows 2003 Server? I highly doubt it!