"Yeah, after a lot of optimization, it might work better. But really, do people really want to do that?
In the end, does the startup time change to instant on, or will rotating screen actually be fluid, or will the screen becomes a couple of inches larger, or will the screen change to IPS technology, or will battery time actually be on par to the ipad?"
1. It does work much better (not just a little

) However, no, the general user is not going to want to do all of that. Really they should buy an ipad or a Nook.
2. The startup time does not become instant on (it is pretty short though post optimization), but it does wake from sleep in like 3 seconds. I mostly leave it in sleep mode and plug it in when I'm not using it. Actually, we don't really ever shutdown our ipad or iphones either, just put them to sleep.
3. The rotating screen is very fluid. Never had a problem with that at all. It's fast and can rotate in all directions. Also, Tablet Tools makes it work with a simple tap.
4. The screen is not as good as the ipad's, but quite good for most things. Again, it is still a netbook and the form factor necessitates the trade offs with screen/battery.
I would only recommend the Asus to the type of user that wants a computer too. The Nook is a great ereader, and the ipad is a great overall entertainment device. Neither one is a computer and they both are meant for different purposes.
All three devices provide a great experience for different types of users.