But what do people expect to use on it, out of interest?
From what I've read the Debian version done for the pi will run lxde, open (or libre?) office will be available, xbmc will be there for videos etc, i think there's a version of rhythrabox for arm, etc. Thats most bases covered.
Your average user will not use a pi I would imagine (tho they may have bought one thinking they'd got a bargain, will take one look at a PCB and panic), but this type of thing suitably packaged (maybe with slightly more RAM and a slightly faster processor) could be what takes Linux to the mainstream.
Can't wait for mine - due 16/4 according to Farnell....