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I had never heard of this before, and it certainly looks to be quite unlike anything that's been on a console before... I don't know about the whole 'appealing to a younger demographic' though - looks more like a stoner's dream...Little Big Planet is the most innovative game I've ever seen. I can see this as machinima heaven. I have to admit that I would buy this if it came out tomorrow just for the creative aspect of the game. Sadly the trailer is misleading, you have to see the GDC video to understand that its not so much a game, you make it into a game.
http://www.gametrailers.com/gamepage.php?id=4491
"Home" looks like Sony is trying to kill of game sales all together I'm all for "Home" sign me up for the Beta.
As for PS Home, there's a bit about it on the BBC News website this morning. Given what I've just seen on the Little Big Planet trailers and the virtual 'world' that PS Home will offer, I reckon the possibilities are endless