I haven't tried breaded products but I'd say you're 100% right. Fish would probably be too delicate to cook in it but chicken could be cooked skinless and with your preferred herbs and spices added to the cooking oil. When it's done the chicken should have a reasonably consistent coating and be healthier too.
Well, in the end I bought one. And we love it. We don't make anything in breadcrumbs but we do 'fry' all manner of vegetable which taste delicious. The 40 minute (average) cooking time isn't a problem either if you simply plan it in. Cleaning it is a doddle too. So easy in fact I prefer to wash it in a second in the sink rather than the dishwasher. My two favourites foods are large chips with cayenne pepper and parsnips with a dash of sugar to caramelise them. A truly innovative kitchen appliance.
Has anybody tried removing the rotating arm and see what it does? I just went to the kitchen to see if it operates without the rotating arm and it does indeed still continue cooking. Maybe at most if the arm is the one responsible turning the food, how about just setting the timer and flipping say the battered fish once?