The specs seem very underwhelming but consider that this product has been in the works for years, and faced several delays. Had this product been completed when it was supposed to, just owning one would put you into somewhat of an elite category.
That being said, this product was designed to accommodate a small niche of a niche market. Originally it was limited to just 3000 units for it's investors, but by popular demand was extended to 4000. Who knows if they'll even make any more.
Even at this point of time where the specs seem so dated, this product will still be one of the best, if not the best, devices for what it was designed to do. For instance, I'm one of the first people in the US to have an HTC T8282 (Touch HD) and this phone has served me very, very well. Aside from making phone calls, checking my e-mail, and browsing the web, I can also run a multitude of games and emulators. Problem, I don't have any hardware buttons, and even if I did, would they be located in such a way that makes my phone comfortable and practical for such an application? How about any other phone out there? Even the "devine" Apple phones are not practical for such applications. The best games that can be run on our phones are touchscreen based.
As far as the Skype arguement goes, Pandora can do it. When I make my international calls with Skype on my HTC T8282, I specifically use a wifi connection.
Using the Pandora would be no different.
This device is for a niche market, and not only will it not appeal to everyone, but it won't be understood by everyone. It's the same thing as 3dconnexion devices. I always found it humorous to read comments about these devices asking what the point was for having a supplemental $600 trackball. Of course it's not for games, but as an engineer I can't live without one.
Now I only wish I was one of the few proactive people that pre-ordered this device...