1. Actually, the .223/5.56mm round has less penetration in residential[1] that most handgun rounds due to its tumbling characteristics.
2. I'd say the AR-15 is impractical for home defense due to its stigma of being an evil black rifle, and that it seems like "overkill" to uneducated people. That's a shame, due to point #1, that it has less drywall/wood penetration than most handgun rounds.
The AR-15 is a pretty useful and relatively economical system, due to its modularity. That said, I agree with a lot of your other opinions regarding elements of the gun/tacticool culture.
[1.] In the drywall/stick-built US, anyway.