I'm concerned that a simple 'roundy-round layout isn't going to pull your buddies kid away from his X-Play-Box-Wii-Station. I think you should have some space for switching. Even 1 runaround track and a siding would give the layout more operating interest.
I'm not a big fan of the chase-your-tail layout. It's fine for a window display or a coffee table, but for something to try to get a person interested in the hobby, it falls short.
Squidbait is right, a roundy without any options will get boring, especially for trying to get a person involved in the hobby, eventually they will want to do more or just abandon it. Remember that my layout is designed to just run without being touched. But the nice thing with yours is if you plan ahead you can upgrade later.
I agree that this layout isn't much for switching options but I'm doing it this way for several reasons-
1) This layout really ins't about what's running on it afterwards. The guy wants to see if the kid is going to have the stick-to-it enough to actually
build a layout before they start a larger one later on. This is more about the building process than the running process. If the kid actually shows an interest in what it takes to build a railroad, then they'll move on to bigger and better things.
2) I am leaving out the switching not just for space considerations but for cost as well. Switches can get pricey. If I can keep this layout under $200, he'll be happy. I priced out track and foam the other night and was close to $100 already. By the time we get a base to put it on, landscaping and scenery, we're going to be pusing it. He's waiting to spend the mad money on the big one.
As far as integrating this into a larger layout, I don't know if that would work or not. He's already messing with RTS and planning a 4x12 L shaped layout for their basement.
Aside from that, I suppose it's a matter of tastes.
I like the roundy-rounders. (Although usually a bit bigger)
I've never been crazy about point to point layouts.
Some switching for variation is cool but as far as operations go, I'd rather just sit and watch the trains run.
I have a feeling they will be a little different though. He's been reading up on DCC and everything else. If they go through with this, he should have quite the layout in a couple of years.