So far I'm not impressed.
Not having a user replaceable battery is a step back, in my opinion.
Requiring that one charge it from a usb connector is a step back (in my opinion anyway) because 1) I don't think it will charge as fast and 2) when I'm traveling it's much easier to find a plug-in than a computer.
Eliminating the SD card is a step back, in my opinion, because SD cards are one way to organize content, and make it easy to transfer and save ebooks and other documents. If this is some indication that Amazon wants to make it more difficult to read ebooks from other sources on the Kindle then I thoroughly disapprove.
Personally I think it looks a little sleeker than the present Kindle, but let's face it--I don't think *anyone* bought the Kindle for its looks.
I'm inclined to agree that this is probably an early prototype that Amazon rejected. At least I certainly hope so.