I think a bigger problem might be that for the majority of people who use The Facebook, diaspora has absolutely no denotation. (And very little connotation).

Diaspora is at least an easy-grade SAT word.

Even for those of us who know the denotation, it gives absolutely no indicator as to what the product does. (It is instead a reference to how the product works... dispersed Facebook). From a marketing standpoint this is a problem.

Hopefully this will become 'the diaspora project', and they will come up with a new name for the actual results of it.