It weighs how much? It costs how much? Doesn't seem like a winner.

AFAICT the only advantages it has over a less-expensive netbook is that it has a little more screen real estate and it has a better form factor for interstitial use. If it were priced competitively with the Kindle it might catch on, but I don't see that happening.

I don't really see this catching on, though I've been wrong before.

2. Dependent: This thing has no optical, DVD, or BlueRay drive. You need an entire nother computer to use this thing. I ranted about this with the MacBook Air. Lack of a self-sufficient system makes it a big shiney toy, and quite frankly, I would rather a toy that did the same thing and was more portable, like the iPhone. There's a reason the things are designed to fit in a pocket.
My experience with my netbook have made me question this. The only times I've used the optical drive on my MacBook has been to upgrade the OS (once), rip a mix CD a friend sent me (once, and she could have just sent me mp3's), and to watch a single movie on a plane (once, which I could have downloaded beforehand or gone without). Optical drives just aren't that useful to a lot of people anymore.