electric heat refers specifically to heat generated by heating an element with current.
The issue is that standard programmable thermostats don't come close to the price of a Nest... about $20.
These wifi light bulbs are 3 for $199: http://store.apple.com/us/product/HA779VC/A/philips-hue-conn...
I mean, I just don't get why people are so angry that someone would possibly want to spend some extra money to have a cool thermostat. If it was a cool video card for $249 that just lets them play games, no one would blink an eye. But because it's for a house, but for a part of the house that is supposed to be utilitarian, it's a sin.
http://www.homedepot.com/p/Honeywell-Wi-Fi-Programmable-Touc...
I could buy a new fridge, a new stove, and a new water heater for that kind of money. Nice ones, too.