Upon first view, the Palm Pre looks cute and cuddly. You can't see the screen when it's off, it's just a smooth surface with a little white button. You turn on the screen using the power button on the top-right of the phone, which I frequently have trouble finding. The Pre looks quite similar from all orientations, so I'm always flipping it over or around to find the power button.
The phone functionality is pretty good, though there is still noticeable lag when you perform actions. It's gotten better with updates, and hopefully will continue to get better.
Where this phone really shines is in its extensibility. Using applications like Preware, there are a huge number of patches that you can apply to the phone, improving its functionality dramatically. I really appreciate that Palm has released the source for WebOS, which powers the Pre, and has allowed homebrewers to change whatever they want in the phone.
The apps are good, and getting much better now that Palm is allowing native code applications (vs. Web-code applications). The Need For Speed game really shows that this phone is on par hardware-wise with the iPhone, even though you wouldn't get is.
I think this phone is fantastic for tinkerers who don't mind getting into their phone and patching it. It's also great for people who want a touchscreen and can be patient with some slow responses. I wouldn't recommend this phone for someone who just wants a phone that works quickly and reliably, as the slowdowns can get frustrating.
Oh, and that keyboard is great too, once you get used to it. I can type on it quite quickly now, with minimum mistakes.