Did it hit the sweet spot?
It clearly stated what many of us (and other sites) have commented (but you listed them out more clearly)
I think what Apple is doing from a portfolio stand point is a really good strategy. Many business users (including myself) see this as a good option... but more in the lines of a companion device than a replacement.
You stated why I also thought...the price point is a deal breaker. Why would I want a device that I would need to compromise certain tasks and features when I can get my same enviornment (Windows and Office) on the Surface and not need to compromise?
The surface is by far the closest I think there is to a true laptop replacement, where my only drawback is when using it on your lap (it's just not confortable), but aside from that it rocks!!!
Apple definitly did there homework...I was really impressed with the stylus and have to give kudos to the team that designed it. I do see it has a great deal of potential...but not as a replacement device (IMHO)