Re: That's why they call it a "development board"...
"Then why is it being sold to members of the general public and not only to developers? Why were the first boards handed out to school children?"
I can't speak for the Foundation, but I'd hazard a guess that it's because there are members of the public who (a) are not software developers, (b) are aware that the Pi isn't a finished product, but (c) are tech-savvy enough (with Linux, computers, etc.) still want to have a go at tinkering with it.
Case study: I'm not a programmer (beyond a certain level of scripting), and I know full well the Pi isn't a polished product (I mean, it comes without a case or any peripherals - what more alerting do you need? neon signs?), but I have ten years of Linux experience and jumped at the chance to get a small, dirt-cheap unit I could tinker around with (and maybe do something useful with, though that's a bonus).
And as for the schools: I think you may find that at this stage, the dev boards are generally going to the computing/electronics clubs, where the kids are interested and/or more capable of coping with the Pi's current "quirks". (Certainly, if the Scout troop showcased on the RPi site is anything to go by.)
I see the point you're trying to make, but it seems to me the situation is a bit less black/white (devs/public) than you may be suggesting.