The 326dpi display is what made me proclaim out loud "wow", I didn't know that level of resolution was possible using IPS panels.
I will say that I'm not fond of the design of this unit: it looks too much like the handheld battery-powered Braun shavers of the 1970s and 80s that were black plastic with various metal bits sticking out, invariably becoming greasy and yucky over time. It wouldn't surprise me if this non-flush design went the same way.
I would be interested in buying this product to replace my PDA and mobile phone, and I was all set before Steve announced that 32GB is the capacity maximum for this generation. It's the first time they haven't announced a doubling of capacity. I guess I'll have to wait until next year for the 64GB version, but by then my music collection might be more than that (I've got 54GB right now).
Design has also improved, one could say it's almost Zune-like.
The desktop looks boring and uninspiring although experience tells me it will at least have a super responsive and smooth UX, something other devices could learn a lot from.
I don't understand the desire to host a complete music collection on the device. At least for my collection which includes many FLAC files that's completely unrealistic. Simply stream the music from a home server with real-time transcoding. My tiny iPod Shuffle (lovely piece of hardware) with a mere 2 GB also has vastly more music on it at any given time than I need; so changing the music from time to time is quite fine.