God, but this company really gets design. Not just the physical design, but also the user interface. I've only run through a few sections of the demo (and you should, too), but I can tell that they've nailed "it". . .again. For example, look at the feature that lets you browse through your albums by cover art: High voltage.
I can only wonder how Microsoft's Zune team feels. Was this a blindside hit? Maybe, maybe not. Yes, there are two different strategies at work here. But, you've got to wonder about the impact that this device will have on consumers who were considering an MP3 player. Also, what about those who were considering an all-in-one device such as a Treo or a Blackberry?
My only concern is that, as of now, the plans are to initially make it available only through Cingular. On the other hand, that certainly gives it a kind of "exclusivity".