It's funny how things can be taken so far out of context, sometimes. In some cases it's just someone innocently skimming through a transcript and misinterpreting what they read, in others it reveals a certain bias or predisposition on the part of the person blogging/tweeting.
That said, I agree with your post. Too many buttons/controls add a lot to the complexity not just for the folks writing the code, but for the residents who are using it. One area where I think the Viewer could benefit greatly is by defaulting to a minimal set of controls, then let residents optionally open up the other groups of controls through something like profiles (builder, machinimist, role-player, etc). As a power user I like having access to all the knobs and buttons and switches, but I also recognize and understand all those controls intimidates and turns away novice users.
Some RL friends were recently visiting, and asked us to show them "that Second Life thing" we spend so much time with. Had there been a candy-coated version of the Viewer, chances are they would have signed up.