The fact that Facebook can effectively take over Android phones without having to work directly with Google is a great thing for Facebook. It's clear that the immersive Home experience works best on its platform. However, despite Schmidt's enthusiasm, there are serious questions about whether putting Google's tools in the background could be a problem for Google down the line.
The reviews of Home have been mediocre. It only has a rating of 2.3 out of 5 stars on Google's Android store, based on nearly 4,400 reviews. Over 2,000 reviews gave it a rating of just one star. In contrast, Facebook's Messenger app has a rating of 4.5 stars on the Google store.
(Read More: Why Facebook Phone App Could Mean Huge Problems for Google )
New ads showcasing the Home app have drawn a lot of attention, but have also drawn criticism. The consensus is that they're "weird"—one shows a Facebook employee tuning out during a speech by CEO Mark Zuckerberg, as he imagines a goat bleating in Zuckerberg's face. And many bloggers have attacked the spots for encouraging users to tune out from what's happening around them.
But even if Facebook home isn't a big hit here in the U.S.—and isn't available to iPhone users—it may not really matter for Facebook's bottom line.
Home is really a play for the social network to become the home screen for users in international markets, where users have little or no access to desktop computers. And, while Facebook has permeated the social networking market here, the potential for growth is overseas.
With that in mind, Home hasn't yet been put to the test. Now it'll go head-to-head with start-ups like WhatsApp and WeChat in Europe and Asia. We'll see if on the International stage it can convince users, that there's no place like Home.
—By CNBC's Julia Boorstin; Follow her on Twitter: @JBoorstin