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The presenter handled it well, and considering this is a demo of an unreleased product, the audience must have expected that it's not going be perfect quite yet.
Definitely true. Aside from his stumbling over his words when the demo suddenly stopped working, the show went on and he dealt with it pretty well.
Seems like a rushed presentation perhaps to get enterprise markets to hold off on iPad acquisitions.

Balmer and Sinofsky underwhelmed - the other presenter was excellent I thought.

Design needs some work, looks more like a 3 month project rushed through ASUS or another manufacturer.

Smells like the XBox1 of tablets. They will build a big market because they will pour money into this whatever it takes. But buyer beware on the first version - this is a rush job.

It looked responsive at the end of the presentation. More abuse of the word "bricked".
It looks like he switched to a backup device
Looks like he grabbed another unit. Not a big deal given that it was a presentation of an as of yet unreleased product with beta software.
This happens to everybody. If Microsoft had announced the surface and planned on selling it right away, it would be a big deal, but beta software having bugs? Would have never guessed.
At least there was no BSOD. :P I can give them a little bit of leeway since it's prerelease.

However I have the feeling that Windows 8 is not going to be just rushed out the door, but pushed kicking and screaming. This is not a good sign!

Just keep desperately trying to find something to complain about!