I added the battery grip to my Rebel XT because it felt too small. I can't imagine putting a long lens on that little Olympus.
Exactly, I think they are cutting out a huge part of their consumer base with this product.
To be honest, no. Entusiasts like to think they are the large piece of market, but all things considered, about 80-85% of all dSLR's sold is the lowests segments. Most of them also goes to people that only had a compact or slr-like camera before. most of them get at most two lenses, usually a kit-zoom and then something like the light 70-300 zooms. There you have the biggest part of the entry-level DSLR market.
Most entusiasts usually step up a notch sooner or later. And when you get up there, its still only a small part of the market. Thats where people start putting longer and heavier lenses on. And usually, most entusiasts doesnt really do it for the image quality either. Even the entry level cameras are good enough for what most people need, although the entry level lenses is decent, they arent really great when you start printing larger size. When i worked at the trade fairs though, we usually printed to 70x100 cm prints, one from a dslr-like compact and one from a dslr. And to be honest, the difference between them wasnt that large if you discount things as DOF, etc.