Verdict, I like it.
Ok, so inevitably it's not as smooth in places as an iPad, but, at £159 or £199 it's a bargain. I mainly want to use it on the train during my commute (tethering), I try to avoid taking the laptop as it's so fricking heavy and I once left it on the train. (Please ensure you take all your belongings when leaving the train....)
I actually like the form factor, it feels like the experience that I want on my phone - it's a perfect size for portability but the iPad still regins supreme if browsing on the sofa.
Android has certainly come along way since its first release and it's getting increasingly difficult to knock it - fragmentation still comes up, but if you buy "google experience" devices (i.e ones sold by google) this shouldn't really be an issue.
This has me pretty much sold on changing to the next google phone, there are so many things in Android which for whatever reason Apple don't want to implement (and getting more irritating as every release that goes by), but would make everyday usage so much easier.
Go buy one, you won't regret it.