I think you have to consider its shortcomings in two categories: hardware and software. The hardware ones are legitimate gripes, but this was essentially a hardware release. And while they were demoing various software features, most of those features were simply to position it: yes it can browse the web, read email, play games, read books, etc. I wouldn't read too much into specific software features and functionality: the fact that multitasking wasn't shown here doesn't negate the likelihood that multitasking will come out on the next OS release. Ditto flash support.
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