I tried it Friday while my friends were looking for a movie to download off of Netflix.
It was a mixed group so it was hard to agree on one, which gave me an another friend some time to walk around.
It's as boring as it sounds. We came across some guy talking to a girl avatar telling her about how depressed he was because his best friend just killed himself. We did the most logical thing to do in that situation, we put our avatar in between them and started doing the running man and robot dance. We did this until the others decided on a movie, Dan in Real Life(It's a good movie that's worth renting). We were doing this for about 15 minutes.
The guy was ignoring us and kept rambling about why he's so depressed and the female avatar kept telling us to show some respect for the guy and to leave them alone.
We were drinking so we couldn't stop laughing although the sober ones in the group didn't see the entertainment in it.
I'd say PS3 Home is good if your looking for something to do for 15 minutes and your to drunk to do anything else, or if your best friend just killed himself and you don't have anyone to talk to because your family doesn't understand your pain and confusion...
...other than that it sucks.