In all honesty, I don't what Activision is thinking.
Activision has made some pretty big leaps and bounds when it has come to the gaming industry. They were the first to bring Music-genre games to consoles. They has huge successes with Guitar Hero, but now they've kind of lost their track. Instead of making new, pioneering games, they are making games that we've all seen before with different face and graphics.
Judging by the player reviews I've seen of "Band Hero," I guess I'm not the only one who thinks this way. Do you see EA and Harmonics overflowing retailers with game equipment and peripherals that are the same as the last game they've made? They made a Beatles Edition Rock Band and of course, Rock Band 2, but they added the ability to put a cymbal expansion kit on them, and upgraded them. Guitar Hero made World Tour, then 5, then Band Hero. There is no difference in the packages aside from the fact that they include different games.
Because producers are trying to milk this genre for everything it's worth, it's starting to really die off. I don't see many of my friends playing any version of Rock Band or Guitar Hero anymore, and frankly, I don't see a need to pick up my guitar anytime soon. The genre has turned into the overused WW2 genre of First Person Shooters. I think publishers and developers need to take a step back and analyze what they can do make the genre stir again. It would be great to see something different, but because they have slapped together so much stuff in the last 5 years, I don't know what else could be done. They should have waited longer and given us better peripherals and song lists, rather than throwing different games at us back-to-back.