It's shiny, well designed, and the right product for their line, but it's priced too high.
Put it at $1400 instead and it'd win at everything, but at $1800 for a 1.6ghz proc? Sorry, too steep.
That said, I think it'll sell pretty well because it's Apple and it's thin and shiny, but they could've locked up the game if they'd gone a little lower.
Apple TV2? thbbb.
The new Time Capsule on the other hand? Nailed it!
Shared network HD (usb expandable), router with gigabit interfaces, USB print server, and a wifi-N access point for a reasonable price.
I think this'll be the sleeper product of the announcement.