How Fruity is Microsoft New Xbox Experience: Avatars

Why is Microsoft doing this? The Avatars for Microsoft New Live Experience has to be one of dumbest things I ever seen. You be the judge do you like it? or is this an internal Microsoft joke? This goes one step further to illustrate a few things: Sony's HOME is something Microsoft is worried about and two this gives credence to Nintendo Mii on the Wii if that makes any sense.