The iPhone had similar naysayers. Once it was on the street the word of mouth was positive enough to exponentially jump start sales. I do believe that even with its limitations, this product will have a similar trajectory. I don't disagree with some of the observations, but the product offers enough value/innovation for me and other people to want one. For example, it's only $200 more than a Kindle, but far more capable. It's ideal for much of what I use my laptop for - reading publications, web surfing, etc.
Betting against Apple hasn't really proven a winning strategy for the past decade or so. But that's why they play the game isn't it? We'll see.