Watch the Keynote video: http://events.apple.com.edgesuite.net/1001q3f8hhr/event/index.html

IMO, Steve doesn't seem very convinced about the device. At least comparing his demeanor with keynotes of the past. Audience reception was positive, but due to all the leaks it was distinctly subdued.

While the keynote shows some strengths, I can't say that the intended goal of the device (being BETTER at certain things than Notebook or iPhone) really comes to fruition. Steve actually demonstrates quite clearly some of the disadvantages, including holding and typing while sitting. When he does the "it's that simple to do email on the iPad" not even a peep out of the audience, because everyone can see how painful it was. His posture was a wreck, the iPad was precariously balanced on his legs and the typing was ultra slow and error prone (which I believe can be improved, but it won't match a physical keyboard).

This is a terrific vertical device. Unlike many other devices it actually has a tremendous number of vertical applications, which some people would consider enough to move it to a horizontal type device. It's just not general purpose enough for that however. I don't think there's anything here, problem wise, that realistic pundits and prognosticators didn't anticipate. What Apple has that no one else has even a clue about, is software. That's going to let Apple's device look better and likely perform better than everyone else, but as Matt mentioned, I can't see how this thing will be a runaway success. I do see it beating out the Apple TV however, if only because it's a more accessible device. Most people don't understand the concept of a settop box or connecting things to a TV.

I'm 1/3 of the way in to the presentation. Summary so far: Painful. I actually feel a bit sorry for Steve at this point.