The page you've referenced talks about a different Niles product (the names are similar). The ICS product line is a whole house audio system, and yes it is pricey. The Intellicontrol system I linked to is an intelligent ir system, installed it runs about $1500.
I agree with you on the issues you've mentioned. Like you I am a tech freak, but what the two of us might think is easy to set up would bamboozile the average guy into avoiding such a product!