Thanks for taking the time to post your thoughts on the template (and Kanban in general).
RE: Flexibility of physical Kanban boards - I agree with you that no electronic tool will ever match the flexibility of a physical kanban system. The BIG question is "how flexible does an electronic tool need to be?"
When we were originally discussing what we should build we discussed these issues for a long time (weeks) - we finally made the decision to focus the first release on visualisation and sequential processes. We would then release and get feedback (and improve).
RE: Modifying your process - this can be done by modifying (adding new ones and changing the Order) the Process Step work items - the Process Steps that are created when you create a new project are more "default" steps.
RE: Interactive Kanban board - again, we've discussed this a lot and we're hearing you.
So to summarise your adoption blockers:
1. The Kanban board needs to be interactive
2. The Kanban board needs to support hierarchies of horizontal and vertical swimlanes.
This is great feedback and is much appreciated.
Dave, thanks for the +1 and additional comment.