The video still shows a lot of lag between when the stylus touches the glass and the pixels in the app show the pen trail. This needs to be heavily optimized or else it will make their hardware a lot of engineering work for nothing and users won't be happy. At this stage, from the video, it looks to have similar latency as other existing iPad sketch apps and those have no hardware dongle or stylus (and cost $100 less…
My use case is simple, I just want a digital copy of my notes -- I don't need any OCR or anything fancy like that, and I'm not convinced that a LiveScribe is the way to go.
I had high hopes for the NoteSlate, but that product has turned out to be vapor ware.