I honestly fail to see the issue. Running diesel generators to handle peak demand may not be the greenest move but it was likely the best move before they could come up with a better solution. Should they have left users stranded because they couldn't charge ?

What did you expect from Tesla powerwall ? It's another use of the same battery tech they had in their cars allowing them to use the same supply to build two products. Most of the added value of the powerwall is in the software and the battery management, not in the form-factor of the batteries. I suppose most home batteries are just repackaging batteries used in other industries.