Looking at FCE to edit short films and music videos. There are the rumors floating around that the omission of Soundtrack from FCE 4 has in some fashion hindered the addition of original soundtracks.(One of the advantages to hanging around with a lot of musicians: soundtracks).

Everything else would indicate that FCE 4 would work well as an entry level platform, will I run into soundtrack problems or is someone just being a snob?

Quite frankly, if you need special treatment for a soundtrack it's best to do it outside of FCP or FCE. Either with Soundtrack or a better program or send it to an experienced audio pro. However for everyday sound needs, FCP and FCE are both fine. If you are editing a music video, the assumption is that the music has been already recorded and mastered, all you need to do is drop an AIFF or WAV file on the timeline and edit away. No need for Soundtrack there.