Almost 2 years later, and still no solution in sight for small to mid sized communities...
Telligent has completely failed the small to mid sized communities. The original promise was for Graffiti CMS to take over this roll, but it is now almost 2 years later and there is still no solution in sight to replace CS 2007 for these communities. Here is the latest post (4/14/2009) on the subject from Telligent, What is the future of Graffiti? After reading the comments, I agree that Telligent has completely lost its focus. In less than a year it appears that they have squandered the $20 million from Intel, just like the failed .COMs of the '90s.
The only viable solution is to make Graffiti CMS an open source project on CodePlex, if it is to survive at all. However, I seriously doubt that that will ever happen. In the comments section of What is the future of Graffiti?, Scott Watermasysk states that they discussed releasing it as open source, but decided against it. Community Server is 100% based on Microsoft's ASP.NET Forums open source project, and we've seen where that has gone. I still have hopes that Telligent will open its eyes and smell the air, or that Intel will do it for them, but this current policy is doomed to fail. Been there, done that, no need to repeat it.