Looks like a virtual myspace to me, I see what will make it popular and understand what people will like about it, but I don't see why Sony thinks of this as an answer to XBL. The two seem to promote different uses, Home looks like a social meeting ground to make gaming friend through conversation and simliar interests maybe from your personal apartments.
XBL is targeted more on gaining friends from games with them, easily keeping track of what games people are playing and what games they have in their library, being able to chat with specific friends while even playing different games entirely, buying things off the marketplace like TV's shows, arcade games, movie rentals, free trailers, and demos.
Too me it looks like, even if a lot of the more gaming related tools are encorporated into Home it will require a series of hoops and latters to get to thim, load yourself into Home fly yourself to a theater to watch a preview, creating multilple loading screens, downloading the content. With XBL I just go through some menus and watch it.
I don't own a PS3 although I will eventually, so don't think I'm just trying to boast about the 360 or anything, but from what I read PS3 online right now is weak.
Can you easily see what your friends are playing and join in on there game?
Can you have a friends list?
Can easily see what games someone owns or has played?
Can you easily avoid players you don't like?
Is there any sort of univeral feedback system for player?
Is your online account under one tag, or is it like PS2 where you create one for whatever game you are playing?
Because to me PS2 online was sooo weak compared to XBL, back when I owned a PS2 and Xbox, I completely gave up on PS2 online becasue it felt so inadequate, and stuck to only playing my RPG's and PS2 exclusives on it.