Yes the P4 comes under high load but it doesn't cripple it, when it was my main WHS it never suffered from streaming issues. But it's a poor CPU these days regardless
Anyway, I do think that the minimum specs are too light given what I've seen. It would run, but I'd imagine it would be worked fairly hard for anything but basic stuff. I'd imagine with a poor CPU demigrator will take longer to run at high CPU utilisation. I'm also guessing that the performance of the disks and controller will also have an impact.
The E5200 is most definitely overkill for my use but I can use it as part of my renderfarm. I'm sure a Celeron E3200 will be fine, my main reservation is around the use of Atoms...all this talk of demigrator and minimum specs makes me think they would be hard pushed too...whether that means it would have difficulty streaming HD I honestly don't know.
Duplication. It requires more than one physical hard disk. But yes when you create shares in WHS you have the option to set duplication to "on" or "off". When it is "on" WHS puts copies onto separate physical disks, so it provides redundancy should a disk fail. The advantage is that you get to choose which shares are duplicated, rather than in a RAID situation where it would just mirror whole disks. So providing you don't duplicate everything, it can be more efficient with your diskspace over a RAID array.
For example my DVDs and BluRays are set with duplication "off" as I have the original disks as backup. Documents, photos, musics etc have duplication "on" as they would be difficult to replace. Demigrator manages this duplication in the background.
If you had multi gb or tb of data with Duplication on and regularly moved it around, this would have a massive impact on the workrate of demigrator.
[Edit: I've been doing some searches this evening, and it does seem that there are some pretty high powered rigs out there - including quads that do suffer from streaming issues - I think given this, I would recommend once again using the trial version to see how it performs on your intended hardware before committing to it]