Hulu's Desktop App - HUH?

With much fanfare, today Hulu released a desktop application that lets you watch Hulu shows from an installed client instead of in a browser.  Rather than attempt to describe why this is important, I'll refer to what they themselves say in their FAQ:

How is Hulu Desktop different from Hulu.com?

Hulu Desktop runs directly on your computer and does not require a web browser. It provides an alternate way to browse and view content from the Hulu Library.

That's right, it really doesn't do anything that's not offered in their (fantastic) website (aside from adding cumbersome navigation with a computer remote control.)  In fact, I found the interface to be clunkier, and performance worse, than their website!  PCWorld says that "users have been clamoring for a way to get it out of the browser and into the living room. Hulu Desktop looks like quite a major effort towards answering this call" - while I'd love to get Hulu off my computer and onto my TV, I don't see how a thick client on my Mac is any different from a browser on my Mac.

Hulu could have differentiated this client with useful features, like automatically downloading shows for offline viewing or copying to an iPhone (with their advertisements preserved).   Instead they tried to replicate the functionality of the website, and fell short.

One can only assume that they're attempting to build a base set of features first, to make the app equal to the website, before adding differentiated features.  I believe that this is exactly how NOT to launch a new product.  A new product or service, aimed at early adopters, should address a pain point for which no good solution exists.  Worry about replicating the competition's functionality later, as you move into the mainstream.  Early adopters will forgive bugs and missing features if the product does something unique and important.  A Hulu app that did nothing but download shows for offline viewing would find an enthusiastic userbase, and would be well positioned to move into the mainstream as features and polish were added.

I hope that there's more in store for this application, and that if they are building functionality in the wrong order, they'll eventually arrive at a useful product nonetheless.  The alternative is that they built an application just for the sake of pulling hulu out of the browser - an alternative that makes no sense at all.