Good points. Yes, iTunes is computer entertainment, and for that matter, so are things like GarageBand and most uses of digital photography. I'd bet that there's a lot of time spent on hobbyist activity as computer entertainment. So yes, I have to concede that point.
I think you misunderstand what Storytron is all about, but I don't feel any need to cram my opinions down your throat; we can both afford to wait. Within a year, Storytron will have made its public debut and we'll see just how well it works. If, a year's time from now, Storytron is an abject failure, you're welcome to send me a "nyaah! nyaah! nyaah!" email.