It's interesting how it can be such a heated topic about what a device should be, especially one like an e-book reader which could be anything from a simple text reading device to a full fledged computer.
I think we all agree that the Reader should not try to be too much or do too much. And that it's not practical for it to do everything. Sony couldn't devote that many resources to updates anyway, I'm sure.
So given a very limited set of features, the obvious goal is to make it great for reading books. Sony has done a great job with that for a first device, I think, even if we wish some things were different.
The real challenge is picking what additional features would make sense. Even from the customer side, not taking into account all the development issues. Personally, while I think the book analogy is very useful to keep focus, I think that it's not a reason to not choose other features that are universally useful. It's the balance that is really tricky!
Like being able to delete a file from the Reader itself. I'd love that. But is it really analagous to a paper book? Not really. And it's not even so critical for Windows users as you can do it when you dock. So how high on the list does it go? I'd put it near number one near hierarchical book listings and better pdf viewing, but I'm sure that if we took everyone's opinions into account it would fall down much lower.
The great thing is that this update doesn't seem to have had any horrible problems. I'm pretty happy about that in itself!
It will be extremely interesting to see if there are future updates, and what Sony can manage to put into them.