As was mentioned above, the vast majority of people who post on RR are not the target market for this scanner.
This scanner is targeted at the person who walks into a RadioShack and "wants to listen to the PD and FD", or maybe sees/hears the scanner operating on the shelf and becomes interested. The target user doesn't have any clue about, or any desire to learn about, trunked systems and their types, sites, talkgroups, limits on numbers of CCs / sites / talkgroups, etc. They want to select their local agencies from a list and start listening - this scanner lets them do that (subject, of course, to those agencies being analog and listed in the RR DB).
As for why this scanner doesn't handle digital... I'd guess that the majority of scanners sold by RS are analog only. For a new type of scanner, it would seem to make sense to create the analog version first, as a kind of "feeler" for how the architecture is (or isn't) accepted. If it's accepted, I would imagine a digital version would eventually follow.
Personally, I take it as a good sign that RS isn't "getting out of the scanner market", a rumor sometimes circulated here on RR. To the contrary, it looks like RS is trying to expand that market.