Yes, the handles/legs are included in the measurement. You can actually remove those if you want but there would be a little notch missing in the corner where the side panels meet the case.
This is for overclockers' use of an mITX system. With the Z77 Stinger and P8Z77-I Deluxe bringing mITX more to power users, it's that market I see the Prodigy appealing to.
My big thing is that I don't want to compromise cooling for size. Most mITX/HTPC cases force you to do that. Very few will fit the AIO water cooler I've got in here and zero will fit two 2x120mm radiators like the Prodigy can (you give up storage/ODD for that though). Take water cooling out and try to fit a stronger CPU cooler and more often than not, you'll find yourself in a pickle there too. If they will fit the AIO water cooler (which is small in itself) or a strong air cooler, they're built for a larger form factor - mATX or full ATX.
I might explore some other mITX cases in the future if some good ones come at CES, but they'll have big shoes to fill.