smoooooooov,
Cute name and icon.

It's not that it doesn't need autofocus, it just doesn't have it. Reduces the manufacturing costs of the camera. And considering disposable cameras and cheap fixed focus 35mm cameras sell, it appears to have been a good marketing move by Fuji to leave it out and make the camera the value leader amongst 1 megapixel cameras when it introed. But the nice thing about digital is that you can program in more advanced camera functions quite easily, thus the good featureset on this camera. Despite the lack of autofocus, I'm sure this camera blows away any fixed focus 35mm in terms of quality. Although the cheesy "protective" plastic screen in front of the lens caught my attention. Putting a cheap, probably non-coated layer of reflective material in front of a lens will affect image quality especially when outdoors unless the lens is crappy enough in which it won't really matter. And I hope it's removable/replaceable, because if it gets scratched, you might as well have scratched the lens itself if the plastic cover isn't removable. Despite these supposed technical shortcomings, the camera does put out better than expected images, "surprising image quality" as one review liked to put it.
And this camera has one focal length, 38mm.
For a fixed lens (non-zoom) digital camera to complement my normal 35mm gear, I went with the Olympus D-360L instead for $80 more. Better lens (Olympus' coated all-glass aspherical), considerably faster lens (f2.8), good autofocus mechanism, matrix metering, spot metering, better flash system, sliding lens cover, etc.