I think I'd be annoyed by this if it wasn't so endearingly clumsy:
On the great scale of product placement in video games, it's just a tad worse than Pikmin, perhaps a little better than those Honda Elements in SSX Tricky, and quite a bit more palatable than finding Powerade ads inside that Matrix game.
Also: the game does a really crappy job of explaining how to use the Edit Mode. I unlocked several item sets but had no idea how to get them to appear when editing. Turns out you have to assign those sets to the level you're building, before you start building it. It's the screen where you pick your level... those three slots by the thumbnails are for allocating item sets. Skip that step and you'll be clicking through the editor with naught but Elebits to place.
I still can't get deleting to work, so my glorious first stab at level editing has a couple piles of objects that I'd like to remove. Fun idea though... I just spent about an hour setting up an awesome kids' bedroom. Big bed covered with comics, the Mac-iest computer in the corner, a closet full of toy robots, about fifteen Wiis and twenty Remotes, and a stack of heavy stuff over the closet so you have to work a bit before you can open it.
And, of course, the EPSON Stylus Photo printer, for the highest standards in in-home photo printing.