i like the concept, i don't like that it's microsoft
I don't think Microsoft understands the marketplace. Their video is selling this device to people doing business work. That market is already covered by Laptops. Maybe this device is just a new format laptop at a low price, but it's not what the great volume of people want.
What *most* people want is a simple way to waste time while sitting on the couch watching TV and avoiding commercials (which now account for more than 50% of network airtime). We also want a way to read books (kindle style) comfortably with a large enough screen (bigger than an iPod), but we don't want something clunky to do it with. (notice that I have decided to speak on everyone's behalf, some people may object to that, but I'm going for it anyway
I'm gonna go out on a limb here and predict that the Microsoft Product depicted above will go nowhere, while the iPad (despite it's name) will rampage over the planet over the next 5 years resulting in a new paradigm for how most home users interact with the Internet, and generating a plethora of copycat products (just as we've seen with the iPod, which continues to drive the market). For what it's worth (ie. nothing), that's what my
crystal ball says.