Overall what was expected. The big innovation for me is all this stuff integrated in one simple package. Which is kind of being glossed over in the press. and the price point -very low.
-liked the rebuilt apple apps. calendar & contacts are nicely rethought. lots of new ui in iwork.
-the times demo is just the start of the kind of integrated media experiences you can build. my thoughts on that: http://www.lukew.com/ff/entry.asp?951
-the cover is awesome design it supports swivel, tip, and protects
-the $9 for numbers vs. $229 for excel is really interesting from a business perspective
Notable hardware gaps (concerning cause no software update will fix)
-storage sizes 64GB for videos, photos, and music -does not cut it
-usb port -it uses "camera" adaptors instead
-GPS only on 3G model
-how's it work with an iphone?
Notable software gaps (can/will be addressed with software updates)
-multiple iphone apps running at once
-multiple users -how do you share the device at home?
-doesn't run flash = many holes on web pages
-no really new interactions -all iphone UI or the most part. but lots of the floating controls outlined here: http://www.lukew.com/ff/entry.asp?983