My take on the announcements:
- This is a revolutionary product (I didn’t realize this until the point below).
- The new app interfaces have sold me.
- The announcement was boring. Demos are boring, watch the 7-min iPad video by Apple to see what this is all about.
- The A4 chip and the amazing battery life will kill the Kindle and the rest of the eReader market.
- The price is amazing. Again, Kindle dead.
- There is far more to this product than what we’ve seen today.
Here are some pics of the simulator. I rushed these out so ask questions in the comments:

Lock Screen

Initial Home Screen

Settings

Search

Settings App

About

Keyboard

Accessibility

Contact App

Contact App w/ Keyboard
Popularity: 100% [?]
I wonder if it allows users to change the desktop picture, the default one looks too much like some of the stock desktop pictures on the stupid Vista!!
You're right… the video nails it. I was happy about seeing Apple with their own chipset, but now that I've watched the video, I'm really excited about it. It's a significant step forward, something that we will see more reasons as to why this coming year.
The bad: Now we have Apple's first step of convergence between handheld and desktop I'm more than a little disappointed and, more to the point, fearful that I still have to go through the app store to install software on it. How does this fascist mentality not spread to the desktop eventually? The good: Allowing VOIP over 3G is a pretty big step towards wrestling control of voice communication away from cell companies. With a data connection and Skype, who needs voice service? Plus, as far as my stress level goes, I get far less angry when Skype drops a call (not very often) than when AT&T does (all the friggin time).
You have some good points, but about the fascist mentality spreading to the desktop I would have to disagree. You have some solid alternatives on the desktop so if Apple goes that route, you'll see a mass exodus to better alternatives (Ubuntu for me!).
Ha. Yep, you are allowed to change the pic to whatever you want. Apple provides a handful to start you off.