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I wouldn't go as far as calling people stupid for buying apple products. But they are suckers for propaganda. Otherwise I agree with your post. The success of this new product mostly depends on how much money will apple put into advertising which translates into people paying way too much for a thing such as this. As per its performance: nothing special. Except the price.:)
How Apple product function can be seen on the case of iPhone. being a great success in USA it totally flopped in Europe. Why? Well, there are several reasons. But one of the most important ones was that they were not able to build such a hype around it. It just shows that the phone itself is nothing special. And the same goes for this new gizmo.
P.S. Writing this from a wonderful asus eee. Price 299 euros.
The problem is the i-phone didn't support faster protocols such as HSDPA.