Welcome to the forums!  I completely understand where you're coming from.  The problem is, the Windows Live Movie Maker version is just a little to simple right now.  It's great that we're getting a sneak peak, but unless the software gets some major feature updates prior to the actual release of Windows 7, a lot of people are going to be dissatisfied.

I've actually copied Windows Vista's movie maker to my Windows 7 machine, and for the most part it works, although Firewire support for me just isn't there.  I was forced to use Windows Live Photo Gallery to import video, then use Windows Vista's movie maker to edit it. 

Keep in mind that both Windows Live Movie Maker and Windows 7 are beta.  So I guess we can't complain.  (although I probably will anyway).