1. RTF files suck.
2. You criticize the fluff, but you want to make something easy to use? The fluff is what makes it easy to use. I guess you can simplify it to an extent, but that might not always be easy to do.
3. Why GNOME? In my experience, KDE runs faster, looks better, and has quite a few good supporting apps (though I don't really use either as of late). I could very well be wrong, but after using both, I know I prefered KDE. However, if you really want it to be simple, you should write your own WM that does the job right. Then, it would be just a matter of using something like GTK-QT (to make sure all of your apps have a consistent theme) and implementing features so that file could be associated with programs and what not.
4. Don't try to hide the CLI too much, especially on boot. A GUI by default is ok, but make sure it can be done by hand as well.
5. How does your package system handle serious dependency issues? For example, it two programs depend on different versions of the same package, how would you resolve that? Also, you should be careful if you let users remove packages that are the dependencies of other installed packages. A novice user could really screw up their system by not knowing any better.
6. I don't think you should go too bare-bones; a lot of people like to have a reasonably functional system after the initial install, not after a few more hours of installing basic packages that were not conveniently included with the distribution.
7. Good luck. I would help, but I'm more of a BSD guy, so I'd rather contribute to a project like DragonFlyBSD or FreeBSD. Maybe some of the Linux users around here could give you better input.
[This message has been edited. Deal with it.]