Well, judging by the product cycles of the iPhone and iPod Touch I think I'll be waiting until at least the third generation before I even consider purchasing one of these. No front facing camera is a real deal breaker for me and the lack of flash support and true multi-tasking are even bigger deal breakers. The two big things I wanted from the device was to be able to video chat and watch television online from Hulu, MLB.tv, or other websites. Multi-tasking is also big deal especially if Apple is going to try to sell me textbooks. Read textbook, highlight pertinent information, close textbook, open iWork, paste information, close iWork, open up text book. Ridiculous.
I guess the silver lining is that despite the missing camera most of my complaints can be addressed via software updates. Still, no camera = no go and I'd still rather wait for a faster chipset anyways.