amrkelly,
First of all, I don't think you need to read Walter Bauer's thesis to understand Kostenberger and Kruger's book, THE HERESY OF ORTHODOXY.
In fact, they summarize the main points that they are refuting.
As for the value of this book, it presents a very solid defense of orthodox Christianity (meaning, biblical Christianity - NOT EASTERN ORTHODOX), against the increasingly popular view that any kind of Christianity is legitimate. In fact, some people even go so far as to question the basis for rejecting illegitimate forms of Christianity.
You would be surprised how many people are questioning the foundation of Christianity, both the writings that constitute the Bible and the teachings handed down by the apostles. They don't like the fact that certain people are branded as "heretics", because they don't understand the historical and theological importance of making such a distinction. (Some people who have contributed to sermonindex threads fall into this category.)
Others have accepted heretical teachings without knowing it. They are flirting with dangerous ideas and are at the edge of a precipice and don't even know it. (Many people who have contributed to sermonindex threads fall into this category... and obviously, are not aware of it.)
What Kruger and Kostenberger do (among other things), is that they give you an accurate historical account of the Early Church's stance against false teachers, hence the distinction between the writings that came to be included in the Bible and those that were rejected.
They provide a solid ground for people to:
1) Know that the Bible is the Word of God (as opposed to various other competing writings)
2) Recognize the importance of distinguishing between legitimate and illegitimate forms of Christianity
3) Reject damnable heresies (by first recognizing them, and then by standing up against them)
4) Abide in the truth of the Christian faith, when so many errors are threatening to engulf them.
The truth is that our culture is becoming less tolerant of the exclusivist claims of Christianity, people in the Church are getting more comfortable with heretical teachings (both because they don't see the importance of drawing the line, and because they don't know how to draw the line), and the influence of false teachers like Bauer and Erhman is spreading like gangrene, and people aren't even aware of it.
So, how can we fight against a danger that is present but unknown to many? First, inform them concerning the danger. Second, convince them of the danger. Third, give them the tools necessary to avoid the danger. THAT IS WHAT KRUGER AND KOSTENBERGER's book accomplishes.
I hope that answers your questions, amrkelly.
In Christ,
Renoncer