Agreed. I've been a long time user of Elements and avoided all the dodgy copies going around of the full version. At the UK price of £7.14 a month I would have been delighted to upgrade but it's only available to existing full Photoshop users. PSE 11 supports my cameras, I have Aperture and Capture One Express so I don't need this offer but it's nice to have alternatives.
So Adobe could have had £85 a year from me in perpetuity but, as you say, the marketing guys messed up. And I'm in a camera club with 50+ members, 90% of whom all think the same. Well done Adobe, another missed opportunity. Multiply it up worldwide and you've lost out on millions.