When Midwesterners complain about how spicy something is, they're not talking about the pain from the capsaicin. They're referring to the unusual flavors from backing spices like cinnamon, coriander, cumin, turmeric, clove, cardamom, paprika, fenugreek, bay, et. al.. These are not "hot" spices, but people still have issues with them.
As an Indian, for me it refers to both. "Spiciness" may bring heat to the tongue (chillies) or may be easy on the tongue but hell in your stomach (Andhra spicy). the latter is less likely to be taken as "heat" but it is more of a combination of spices.
You know I would think so, but I had a roommate who compplained when I cooked with red bell peppers. I would make Italian food with garlic and onions and he would leave the apartment. Some people--and Midwesterners stereotypically--truly have a flat palate.
Right, but they are not going to be the target audience for this. There are plenty of Americans who aren't Midwesterners from Northern European meat-and-potatoes cultures, and Hungry Man already exists for the rest of them.