Alright Houdini finished crunching variations after running all night and it found a slightly better line for Black in the Fianchetto Variation after 7... h6 (instead of castling)... anyway it shows this line is not so forcing as its reputation, Black has at least two ways to play to slightly more than equality, so what's all the fuss about? One is a nice gambit if the sharp stuff suits your style, the other is a fairly closed position line where White's threats are neutralized and Black has some options, though I think eventually Black will want to play for the f5 break or try to trade off the black Bishop like in the KID, anyway, a more closed game.
I'm looking now at the Qe7 stuff, which contrary to some people's comments, looks worst of all... I'd call this the "cop-out" line, for simple equality and nothing more... now maybe there's more practical chances with it, though. Houdini is still crunching so maybe I shouldn't comment too soon, but it looks like very low numbers in Black's favor, lower than the other variations, after the simple point of 1. e4 e5 2. Qh5 Nc6 3. Bc4 Qe7 4. Qd1! and now who's Queen is misplaced?? Of course I mention the practical value... what I mean is I don't believe I've met a Parham player in my life who would play 4. Qd1 for easy equality. They're looking to attack with the "wayward" Queen. Someone looking at the worse options for White after Qe7 leaving the Queen out in the open might be rewarded in practical games against humans. I'm going to leave that analysis to someone else as I really like Black in the other two lines. I will comment again when Houdini finishes analysis on this line only if the results end up different than what it's looking at now.
I think 2... Nf6 does deserve an "!". We use "!" not for "moves that are known to be good" or "the best move in the position" but for good moves which are unexpected. 2... Nf6 drops a pawn, and it's a good move. I'm messing with deep position analysis in Houdini now looking at this stuff... I started playing 2... Nf6 a little while ago and so far have very good results punishing kids who develop their queen too early, but I'm just playing 3 minute blitz on yahoo. Anyway I know 2... Nf6 is the favorite of some older version of the "Crafty" chess engine, so it must be worth a look, since chess engines are notably against gambits any gambit one likes must be pretty special... Houdini, in a deep position analysis 15 plys deep from the initial position of the gambit thinks Black has something like -.30, and its line runs 3. Qf5... which is a move I have actually had played against me, so it's not so crazy to think White might play it. Possilby my opponent who played this against me had analyzed the line with a computer and didn't want me hitting the queen over and over if s/he kept her on e5 for another move and played something dump like 3. Bc4. Anyway I figured this is all good, but looking at this threat I looked again at the line with 2. Nc6 and figured it's obviously great for Black... after 3. Bc4 g6 4. Qf3 Nf6 4. c3 Bg7 Black is way ahead in development, has a good fianchettoed Bishop, something that takes 2 moves to do, but White was kind enough to let him/her do it with tempo hitting the Queen back as it happened, and has 3 pieces developed vs White's 1 Bishop (the early queen development doesn't count.) What's more White's development is further hampered by the Pawn on c3 and the Queen on f3 blocking the normal development squares for the Knights. .... I put this in this machine deep position analysis, and now I'm suprised. Houdini says 6. d3 o-o 7. Bg5 h6 8. Bxf6 Qxf6 9. Nd2 Ne7 10. a4 Rd8 11. Qxf6 Bxf6 12. Nf3 Qg7 13. o-o a6 -.18... a tiny edge for Black... but in short, Houdini deep position analysis 15 ply doesn't think the Nc6 line with the fianchetto is as good as the Nf6 gambit. Now I haven't looked at the Nc6 line with Qe7, maybe that's the best, and also I started the computer analysis in the Nc6 later in the line than in the Nf6 line where I started it right after the gambit, so the discrepency might just be the notorious bad understanding of the opening computers have and how early I started the analysis, but I think Houdini is pretty good, and I think there is something to 2... Nf6. Anyway it's a good enough move to deserve an "!," as it's not only good, but suprising. I'm convinced all of the lines discussed here, 2... Nf6, 2... Nc6 with the fianchetto, and 2... Nc6 with Qe7 are good lines because 2. Qh5 is such a terrible move to begin with... you won't win every game you play against it, maybe some stubborn kid will not learn and stick with it over and over and you can't do anything to help but keep getting a tiny advantage out of the opening and then getting outplayed, but it's clearly a bad move, and Black should get a small advantage. Anyway main point of post, Nf6 is good, at least the best chess engines today seem to think so, and I think it deserves an exclamation point.