KARYANN -
I can't tell you much more about PS Home than you already know - It sounds like I only spent a few more minutes with it than you did (as in, I didn't even stick around long enough to finish the character creation/customization).
iirc, it was supposed to be all about creating your own avatar + home, customizing your clothes, hair, etc and then customizing + decorating your place...all so you could then venture out into your virtual world, with your virtual avatar to meet & socialize w/ other like-minded virtual avatars with their own virtual houses & accessories; so you could all then...wrf?!
Hell if I know
I suppose that they'd all get together to try to convince & re-assure each other that it made sense, and that it was normal & okay to spend countless hours (and money(?); I wouldn't know, but I'd be shocked if Sony *Didn't* have "premium" items that cost real money - and, I'd be just as shocked if there weren't people who'd spend real money for fancier & higher quality pretend clothing + housing) using their expensive *GAMING* consoles to create & dress up pretend people & houses to spend even more time talking to even more pretend people & visiting more pretend homes...instead of, you know - popping a game into it & playing it
If you want more specifics about it...try asking SOERA, I think that he'd be our resident expert and, I'm guessing that he spent a lot of time there