1. I second (fourth? fifth? I lost count!) better digitizer accuracy. I'm a writer, and I use the PDF annotation function when editing/proofreading/critiquing manuscripts, just as I would with a paper copy - so much easier on the eye that using a computer! However that requires accuracy, and the 2nd gen device doesn't quite cut it.
2. Better file management. The '6 items per page' Contentlister sucks as an interface, making a slow device even slower. C'mon guys, let's have a decent graphical file manager, it's not exactly rocket science!
3. Separate charger and sync pod. I can appreciate that fitting an RJ45 in a device that thin just isn't going to happen, but with WiFi built in, you are much more likely to need a charger than a connection cable.
Re issues that have been brought up:
I work in academia and have already bumped into one person on campus who also owns one - we independently pulled out our iLiads whilst sitting next to one another on the bus back into town, did a double-take and went "Snap!"
Bad marketing is sadly the death of all too many great new things. Only last autumn the Palm Foleo was killed before it even debuted! Admittedly it wasn't helped by its high price, but it was basically a 10" clamshell PDA with full keyboard, running Linux, with WiFi, Firefox and Office compatibility, ideal for students, etc, etc. So what did Palm do? Market it purely as a smartphone accessory for executives, and get laughed off the Web by the PDA community...