After a few days of using the device, my conclusions:
It works fine to read documents (pdf books) and watch movies (even on a screen connected via HDMI, which is a plus). You can play simlpe games. You can surf the web (minus Flash).
If you do not want to buy an Android phone (or get locked into a telco contract), you want a bigger screen but dont want to spend a bomb then this device is for you.
I do not recommend the Palroid because of these major flaws (based on the experience with the specific device I bought)
- Dropping wireless connection.
- Stdby mode drains the battery in few hours. My Nexus One can stand 2 days stdby (with regular but not extensive use).
- The g-sensor does not work properly for games.
- You can charge only with the power adapter.
- Anrdoid 2.1 (From other feedback I could read there will BE NO UPGRADE to 2.2!)
I will wait until early next year when the dust around Android 2.3 settled, 3.0 is getting clearer and after finding out which device is future-proof (can be updated), before getting another Android device.