I can see ur work and time putted in it and i appreciate it, but i have to agree with Korman and Graynomad.
There is 2 much theory. Its clearly meant for beginners, but even so it has 2 much theory. I would say there are 2 kinds of people on this forum and using arduino:
tehnicians/engineers, which have the knowledge about most of this theory, now u could say this toturial is not meant for them, they have to learn programing arduino somewhere...
Now i am/was one of them and i found toturials posted bellow very appropriate for tehnical skilled people and begginers, maybe consider them as a reference
hobbyist, which i would say that u have hobbyist which are also interested into theory( but then they proly have theoretical knowledge from other books already) and hobbyist which just want to wire it up and it works
whats common to both groups, they want it as simple as it can get
People want to see how to wire things up(schematics), maybe a simple explanation how an IC or other new part works, if they want to know more it was never so easy as before with google or datasheets etc.
Code thats well commented withing code and maybe just simple explanations outside the code.
Practical experiences and cathchs, thats the most interesting part for me.
And tehnical people like charts, pictures, tables, schematics, because at same second i look at it i am already thinking hmm this works like this, interesting, what does this do and i go google up or at that point i go read explanation with enthusiasm and not just because i have to.
Despite i do find fair amount of pics and tables in all chapters, but i still think chapter 1-4 needs more practical part.
For example look at:
Earthshine begginers guide (one of better guides as far it concerns me)
http://tronixstuff.wordpress.com/2010/04/04/getting-started-with-arduino-chapter-zero/ (ok this 1 is a bit 2 much based on a "Getting Started with Arduino (Massimo Banzi)" book)
They are plain and simple and if u need more advance knowledge u have datasheets, google, arduino forum and bunch of blogs about arduino out there.
Chapter five, page 14 or page 142, if code is short, try to keep it as hole on 1 page.
Or even better as u posted void setup and void loop and commented each for itself, maybe it would be great if u posted whole code at later point, that might not be a problem at such easy project, but what once u have lot of code or even using libriaries....
I just have to agree with tronixstuff on his page
and also assume a basic knowledge of electronics.
He does recommend a book. But i think if people dont have basic knowledge about electronics, they should try something with analog components (transistors, resistors and stuff...) before tinkering with arduino.