If you open Xion's piece in photoshop, and you set the saturation to zero (either through Adjust->HSV or Adjust->Desaturate) you'll see the entire image becomes 50% gray. Xion's piece DOES vary in luminance, which was the whole point of me posting what I posted in the first place...I guess I didn't do a very good job

That is the whole point of the exercise though - that hue and saturation DO affect luminance, while they have no effect on value.
EDIT - Ryan, I have no idea what is up with your piece. It doesn't check out to 50% gray either through desaturation OR by running the grayscale convert on it. Whatever you did, I think you might have did it wrong...
DOUBLE EDIT - Yeah promotion's "brightness" slider is definitely different from the "value" slider in photoshop. I assume the HSV and HSB algorithms differ somewhat, though it doesn't seem to be according to the grayscale conversion's algo either. Which is the confusing part!