So this product will probably please some people and disappoint others because I think a lot of people are not sure what to expect from it. If you are looking for a simple airmouse that will put a cursor on your screen, and work with your mouse-driven applications, or with applications specially designed for this product, I think you'll be ecstatic. If you are looking for a next generation gaming controller that will work with all your PS3 games and such, you'll be disappointed because, despite the fact it says PS3 support, it does not act as a controller. So if you have the right expectations, you'll be insanely happy because you'll only order this for the right reasons.
As for performance, this is much better than the Wii, and more intuitive. This simply works. Setup is a breeze as you just plug the dongle in and you're pretty much all set. I first experienced the Hillcrest Technology on the Kodak Home Theater box and so I did not fret much over this decision; the Kodak box is well built and the controller is seamlessly built into the overall interface....very nice. Here, you get the same technology just more generic.
I'm using this now with my AppleTV/ATVFlash implementation. ATVFlash is an application that supports the Loop. This enables me to navigate the AppleTV menu a lot easier, because it's got a scroll button and I can just motion around. It's a beta load, and it's got some more work to go -- I'd give it a 7 on a 1-to-10 scale so far, but it's a beta and they'll be tweaking it so I have all the confidence it's going to get better. I can also use this to browse and enter keystrokes via the on-screen keyboard that Apple has. So this was worth the Loop+ATVFlash costs because I'm betting other developers will support this as well.
The Loop looks cool too, and it's quite a discussion topic when people come over. If you are into new leading edge products, well then you just have to have this product.
Downsides: I've got no beef at all with the product or implementation. It's all pretty easy and straightforward. If I have any issues it's specifically with how applications have supported this, which in the end I can live with because they will be improving as time goes by.
Note this is not Bluetooth, so the dongle is required. Also, if you use the AppleTV USB port for something else, like external storage, you'll have to get a hub to do both on one USB.