android ports are in the works...
i can't imagine it'll be too long before Android is available for this device... (though I question how stable a "home brew" Android project can be).
There are tons of uses out of the box though.. e-reader is mentioned often.
You can't buy a digital picture frame these days for $100 with wifi... go out and look, kodak sells similarly spec picture frames for $200...
i've used it for skype, it works decently well...
There is an app catalog that's actually quite extensively stocked, there are thousands and thousands of apps... and HP pretty makes it very easy to hack into developer mode so you can add pretty much any home brew anything you want, it really couldn't be easier. In 10 minutes I was able to add in and download a third party app downloader that has about 500 more programs available (many of which are of use to me).
I can see this working out really well for someone that's older who may not need a full computer or full
Also as far as the performance... it's all in the software. The processor on this is actually faster than the Ipad though. There is a tip out there on the web to disable some of the extra logging HP added in, it does very extensive logging on a constant basis. For most users that's just not necessary and would free up some resources.