I've participated in a fair number of these over the years and observed the results. The focus groups are supposed to confirm that some company's very bad idea is really very good. If they support the idea, it's money well spent for ass covering - if they don't, they are ignored.

I remember one in particular, a programming product with packaged support if I recall correctly, where the focus group was dead set against its viability. The project went ahead anyway and the company was out of business in about 9 months.

I've also noted that the groups I've participated in, all consisting of smaller VARs serving small / medium business, the participants are smart and unconventional. There were no suits in this batch and I trust they did as good a job as usual.