I think it is a sleek looking device. However, the price is WAY to steep for me. (I briefly considered it till then...) I mean, I have a phone and if I want, I can get an iPod for much less. Not interested in the data transfer and the like.
While Alton Brown does not like uni-taskers, I am of the thought that a phone should be a phone, a computer should be a computer, and an MP3 player should be an MP3 player. That may be so yesterday, but then again, I have a $50 MP3 player that works great for me and my cell phone was free works great as well.
Now, if they offered it to me for $99 with a new commitment, then maybe I would reconsider. But at the same time, I think I would wait for the second generation.
I loved how Jobs said at the presentation. "It has a 3 and 1/2 inch screen. Its HUGE!" It may be "sizable" for a display, but to describe it as huge was just pure marketing speak.