MS really has a device with potential here. I was intrigued by the iPad (all jokes aside) and the possibilities it holds, but this device has even more potential than the iPad does.
So, is it just the bash-apple-happy crowd that frequents here that prevents such ideas as interactive textbooks, interactive children's stories, note-taking capability (some of which are mentioned here to great huzzahs) from being discussed in context of this device but not the iPad? Multitasking is also key. I just wish media handling was more cohesive in a MS ecosystem, so I didn't have to put up with Apple headaches. That's what keeps me on my iPod, cohesive media management.
In the end, this thing looks cool - let's all cross our fingers that MS doesn't hose the effort before it can get off the ground.