Yes the A330 is a really pretty camera . I saw one in the store yesterday . I think they realize that most entry level buyers may be easily swayed by a "pretty" camera, since they don't know enough to think about how it will be used in practice. However, this does not bode well to the type of people who will be moving to the Sony system. if they can't get serious buyers to start with their entry level cameras, I am not sure they will have enough of a market for their higher level models ( see what experts say about Sony A330 ).
This seems like an unfortunate case of form taking precedent over function. It makes me a little worried about the future of the Alpha line. Hopefully the higher ups at Sony are able to respond to the poor feedback and realize that they went in the wrong direction.