I got one of these for Christmas, and I wasn't sure about it. I'm not a fan of buying capsules, but I figured what the heck. So I gave it a try, and I absolutely love this thing. It's cool, it's really small and doesn't take up much counter space. It fires up in no time, and it makes a top notch cup of espresso. I really like the lungo pods (long shot of espresso - 4 oz.) These come out a bit weaker than an espresso, but a good bit stronger than a regular coffee, and I've been drinking way too many of them lately.
The Americano (regular) coffee from this is decent, although the pod selection is less than a Keurig, but this is really an espresso machine. Also the pod based cappucinos are surprisingly good. Forget the cost of the pods, I'll have saved enough Starbucks cash to pay for this in no time. Unless you plan on dropping a grand on a real espresso machine, this is the guy you want.
Also, it leaves a really nice crema. Very impressed, and couldn't recommend this more.