I received my Magic Bullet set as a gift, after coveting it for quite some time(love that informercial!). After owning it and using it, I still love it, but I did have to adjust my expectations a bit.
It works wonderfully for soft foods. It is great for making dips, sauces, marinades, salad dressings, tapenades... It is great for blending soft foods, for making emulsions, whipping cream... I have made great hummus in my Magic Bullet, as well as chicken salad. You get the idea.
It also makes an EXCELLENT coffee grinder!
What it does not do is work like a normal food processor, in that it cannot process harder foods. Raw vegetables are a no. Also, forget crushing ice! Those mugs that come with the set are a cute idea, but they are useless. You cannot make a frozen drink with the Magic Bullet because all it does is throw the ice around in circles.
So, If you want a real food processor, do not buy this one. If you want a light-weight and small processor that is great for soft foods and liquids (and grinding coffee beans), then you can't go wrong with the Magic Bullet!