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For me, I'm very interested in this as a lightweight, cheap laptop that can function as a PDF viewer. Possibly with a side job as a writing tool.
I don't find $500 to be a bad price for this. In fact, a few years ago, when people were dreaming that Palm might make a laptop-like device, $500 was the magical dream price point everyone was quoting. For an ultraportable laptop with this quality screen, it's still a good price.
Yeah, you can get a $400 laptop now. A POS laptop with lousy battery life, lousy build quality, huge size and weight, and obsolete components. That doesn't tempt me. A better comparison might be a used model of an older, good laptop like a Thinkpad (I picked up a T23 last year for $500 and it's been a champ). But even then, the laptop is way bigger than this, and tied down to an outlet in practical terms if you are going to use it for more than a short time.
The keys for me will be two things:
Can I get it without any strings attached? Having to buy a phone plan or Treo with this would be a deal breaker.
Will it attract a community of developers? If people start porting apps over to it, it could be great, but Palm has to win over Linux folks first, and I don't see much sign of that yet.
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