Yep that’s the way it is today. Speaking with my customers the Content Deployment feature in MOSS 2007 gets a lot of negative critique. Some of it is justified but some of it is… well, pure BS.
I recently had a customer that complained that Content Deployment doesn’t work between their test servers. I took a look at it and found out that the servers had no way of finding each other, no DNS, no host file, no nothing. Well, then it’s not very strange that you can’t deploy content between them. I don’t have a clue how they managed to set up the path in the first place. Pretty obvious they had some major changes made to the environment that they where not aware of.
I’m not saying Content Deployment doesn’t have issues, it does. Later at the same customer we ran in to the PRIMARY KEY violation issue and had to get a hold of the QFE for that.
Found this blog post on the subject, which really hits the nail on the head. Make sure you know your environment before you blame Content Deployment.