To me it's only half a computer we've got netbooks, laptops, tablets etc which will do all of what it's offering and more.
Personally I can't see the point in having a device solely to be used for wireless networking it's just another gimmicky toy and I for one won't be wasting my money on it because it doesn't fulfill what I require from a portable device.
Additionally, because Apple has a need to appease their mobile network partners Apple has not implemented technology (webcam) that would allow iPad to iPad Skype, for example.
Yes, it is a well designed little package but you'd expect this from Apple, but unfortunately it forces people to buy ALL content for it from Apple.
It appears to be a rushed product without the full range of slick features Apple normally has. Either that, or they are planning on cashing in big on the second generation and hoping all the Apple die hards buy the first gen.
This could have been revolutionary, running OSX or a cut down version. It could have replaced the netbook - completely. But instead it sits in a tiny niche that will only expand because of Apple product hype and not product quality and usefulness