Cecil, a few things...

First, SharePoint is a rather complicated product, with many configurations.

Second, you answered your own question (why aren't more developers into SharePoint?)....one big reason, accessibility. You said yourself you didn't have the system rqmts. You can install Visual Studio .NET in less than 30 minutes. You can usually install SQL Server in the same amount of time. But creating a SharePoint environment is more difficult.

- SharePoint 2007 required Windows Server....that meant a server-based install. Not all developers are willing to create a server environment or even create one using VMWare. There is a 3rd party tool you can use with Vista Pro or Windows 7 Pro that tricks SharePoint into thinking it's been installed on a server environment (by intercepting the installation) - but once again, it's more involved.

- SharePoint 2010 can be installed on Win 7 Pro for development purposes....but it requires 64 bit, and you have to handle the install pre-reqs manually. This can be a royal pain. Also, you "may" have to use PowerShell to establish admin service accounts.

I know how to install both SP2007 and SP2010 from begin to end...but I damn near pulled by bloody hair out to get to that point.

Third, yes, you're seeing SharePoint requirements in the public sector. I posted a while back that the defense department was using Microsoft tools more than ever, and that included SharePoint projects.

SharePoint is such a wide area that people can work with it from many different angles ....administration, .integration with Silverlight, integration with business intelligence, integration with lists and document libraries, business dashboard integration.....and I haven't even started.

I've noticed an increasing # of sessions at .NET user groups and codecamp events on integrating SharePoint with .NET....