So they're ditching the idea of having Home double as a lifestyle experience? They're going to drop Dress, shopping, etc. because they no longer care for the mum and teenage daughter demographic? I guess if the beta is still small, it makes sense to focus. Otherwise if they're wanting to actually test final usage, surely they ought to try to reach some of the broader demographic to see how they use it?
The problem I see with starting with a population is the same with online games. You end up with people who have already formed social groups and habits, who have set the feel of the place. Then inviting other people into that, they'll feel at odds. This way, I know the core culture of Home is going to be Online Gamer, and not Family Unit, which is changing my expectations.
