This would have won them a lot of sympathy and trust.
Edit: I agree with everything jrockway said. I've seen improvements in my sleep, but it's not a miracle device: you get what you put into it. My problem was that I was sleeping a lot (10-11 hours wasn't unusual) and still felt tired in the morning and often went back to sleep. Since using the zeo, I've been able to reduce the amount of sleep I get to a more reasonable level (7-8 hours) and I feel pretty good in the morning. I've also been waking up earlier in the morning, giving me more time to do things I want to do before going to sleep. Sometimes I was too optimistic and set the alarm too early, though, and went back to sleep anyway. That rarely happens now, however. That said, I can't way whether my improvements in sleeping are due to the zeo or just a placebo effect.
Having hard quantitative data lets you analyze how your habits affect your sleep. For example, it's completely obvious to me now how drinking alcohol before sleeping negatively affects your sleep. The quality of my sleep went down and I'd wake up several times during the night. I'm hoping I can figure out more things like this like jrockway talked about (it's not perfect since you can't do something like a double-blind study, but you can try to emulate the scientific method).
The headband is fine. The alarm clock has a similar interface to any other alarm clock. The alarm sounds are really pleasant to wake up to (no beeping). I would recommend this to more people if it weren't $200, though to me it's a bargain for sleeping better.
It's not all good, though. Their web interface is a PITA to use (the textfields are their custom javascript code instead of textfields, and this completely breaks conkeror), and the data the device collects is encrypted so that you can't access it without their website.
The Zeo is worth $200, but it's not a perfect product. I would have liked a VFD instead of a LCD for that kind of money, for example. And hiding my own data from me is pretty evil. If someone made a competing device, I would buy it instead of the Zeo. Probably.
Several units have already shipped and have received overwhelmingly positive responses. While the vast majority of backorder customers understand our difficulties, it's clear that a subset have grown increasingly frustrated, and understandably so. We think this reflects on the great enthusiasm for our product. However, these concerns must be addressed, and we intend to address them. To alleviate the frustrations of our most eager customers, we are offering to expedite orders for those who upgrade to our Pro Package offering. For a minor fee, you will be bumped to the front of the queue and enjoy also all the benefits provided for by the Pro Package. We feel this is the best solution for all. Details will be forthcoming on our website.