The hardware is no doubt impressive, as expected, but I just can't see myself in any of the situations they keep showing in VR/AR demos. Does someone really sit on their couch, put on a massive headset, and scroll through their vacation photos? Does someone watch an entire 2+ hour movie with a sweaty headset strapped to them (and plugged into a socket) instead of on a couch with their family/friends? Would I want to…
I think the next generation of computing devices is going to be centered around the device understanding the environment around you, what you are looking at and doing. E.g. you are shopping, cooking, fixing something at home, running, playing basketball and the device understands what you are doing and gives you info and help about the activity. Democratizing access to a personal universal coaching for everyone, like the Internet did with access to information. This device is kind of like a mac on your head, I think it doesn't differentiate itself enough from what is currently available. That's with the exception for entertainment: gaming and movies where I expect it will provide a much more immersive experience to what you can have at home with a traditional setup, like the other similar device do.
I do like the eye display on the front, I think Apple is making a correct bet that these devices can't cut you off from the outside world. In the long run they will be small enough not to cover the face at all. I think it's probably another 5-10 years before the next big thing, but with the Apple silicon advancements and few year of lessons from this device Apple is the best position to dominate that space then.