I'm not really sure how to respond to this.
My bosses (finger in face) have told me that they don't want me to change my career and become an Embedded Systems Programmer. Note: They see this as not just a programmer for Nios processors but ANY embedded system.
I and several others here are pretty strictly FPGA hardware engineers. (We also have Software Engineers [some of the best in the world], Embedded System Programmers [but none available] and a good number of the finest scientific minds in the world. We are MIT!) I can't go into details but we've done things with Altera FPGAs that when talking to other engineers at trade shows or even Altera FAEs they say "you can't do that!" Well we do and will continue to do so.
We've invoked several high speed serial interfaces before, the latest being sFPDP, and never needed an embedded processor or software within the FPGA design before.
I first bought Nios (I) when it first came out and despite never having a use for it I did manage to keep a license to it over others objections. From time to time I've gone through the tutorials again when I could to keep a basic knowledge of it in hand.
I have used Xilinx's EDK, not for ethernet, and did find it relatively easy to use at the time.
It has its own issues but I got positive results faster than I'm getting now with Nios. (you brought it up)
As to SoPC Builder, well, I feel you're too close to the tool on the creation side/experience and cannot see the difficulty for the truly uninitiated. I've seen this many times before and have been the same way myself when trying to explain my designs to others.
The crashes and hang ups I've experienced are real and I did submit SRs for them. They occurred on Altera designs in support of older Nios dev brd designs, for Stratix EP1S10 and Cyclone EP1C20 boards. (I see they are no longer sold but the Nios II v9.0 documentation clearly states support for them and I have both.) Having now read Quartus II Version 9.0 Volume 4 this should not have happened nor should the work of or suggestions of the SR servicers been necessary.
As to the other things about SoPC, well again none of them look very good from the outside. When I read that the final I/O assignments from an SoPC design are written to a ,html file the software designers around here laughed. Its from them that I was told about students. From my perspective, having once done this years ago, it should have been written, at least, to a .txt file or something that will open within the Quartus editor.
Lastly the career choice. Some near ten years ago I did both software and hardware. The software wasn't just little C code things, I created real time or GUI interfaces, depending on need, for embedded processing systems some of which are still used today. However at that time I saw the tool sets for both software designing and ,particularly, FPGA designing become more and more complicated requiring deeper and deeper knowledge of not just the tools but many other things. I knew I had to make a career decision, software OR hardware. At the time I had one software project before me and seven hardware projects - hardware. My bosses liked my decision.
I don't totally disagree with your view and want to pursue embedded programming but I'll have to do so on my own time. From what I can see you are a software guy who does some FPGA hardware on the side but don't get close to the silicon.
I'm a hardware guy who does FPGA design, high speed printed circuit design (magic! aka. Dr. Howard Johnson), component selection (beyond the FPGA), system testing/debugging and integration, etc.
My PLD/FPGA experience goes back to 16V8 PALs. My first Altera designs were in EP610 engineering samples using DATA I/O ABEL because that was all there was. I went from ABEL to AHDL via the first versions of MAXPLUS. I now do all my designs in VHDL (sponsor requirement). And we've always pushed the limits here because its what we do.
So when I complain of the need to write software, scripting files, to make the software work its because I have a very large hat closet already. When a software tool is pitched to me as being "easy to use" I expect not to have to write my own software for it to be so.
If I may make a suggestion;
The TSE-SGDMA tutorial (and probably the "standard" and "full") Nios dev brd design.
Rewrite. Create it from scratch. Go through all the steps of selecting the components, why, adjusting their settings, why, and build the design in the tutorial. Like wise do the same for, say, the simple socket server software design. Go through all the steps , explain why choices are made and compile the design in the command shell (if that's really the way things are going).
Look, think of it this way.
A few times I've gone to local Altera conferences and hear the same comments from other engineers "Where are all the young engineers?"
I know where, I see them here. They learned FPGA design using the ISE! Why? Because the tutorials were good enough to get them to learn how to.
If you make the tutorials (and tools) complete and easy to follow (and use) and your sales people can show these College Professors this (try telling them they need to learn to be both hardware and software[Good Luck!]) then you'll really see some positive results for Altera.