I can see how it would appeal to some people, it's like an iPod with a big screen. I use my iPod HEAPS for email, surfing the web in the lounge, looking up random things like unit conversion and movie information, watching movies on a plane, and even occasionally playing music. This device would be faster, with a bigger screen, but still portable, so that's pretty handy. The screen would be perhaps twice the area of the iPod, which is nice, and would be quite significant.
I'm waiting for the 7" version, which should have a screen about four times the area of the iPod, though at the cost of making it a little less portable.
Don't think I'd buy it at the 499 list price(At Noel Leemings) Since you can get a 10.1" proper Asus for $590
I would however get one at say $350 for use as a TV remote :) since they support the 2011 series Samsung TVs quite well! Especially if it had "SmartView" on it. So you could watch Tv on it while out and about or in the garden
I have moved across the ditch. Now residing in Melbourne as a VOIP/Video Technical Trainer/Engineer.