I sort of agree about AF-S Nikkors. For one, they're huge compared to the camera and it sort of defeats the purpose of the small body. On the other hand, what if you're shooting video and the Nikon 1 offers the best performance video capture for your needs? Then, it might look goofy, but the 70-200 f/2.8 VR II might be the perfect tool for the job.
One thing is for sure, the Nikon 1 cameras are stirring things up a lot. I expect we'll see the same auto focus technology trickle up into the next generation of Nikon DSLRs and that will make more sense to most people. Right now, I think the people who will be most interested in the J1 and the V1 are hardcore Nikon owners and backcountry sports shooters - especially those who shoot video and stills. I'm including a photo of the "Nikon 1 Concepts For The Future" display at PhotoPlus. Note the row of lenses. They're all unmarked models and none of them exist for real. But the obvious message is that Nikon plans to fully support and fill out the new camera system.