I forgot to mention the keyboard should swivel as well... so the keys can be concealed when it folds back. I think another company already did this though.
I think I agree... it's a cumbersome compromise between a laptop and a tablet. It wants to give you the keyboard and viewing angle of a laptop, but the touch interface of a tablet. But with the kickstand, its bulky size and that huge floppy keyboard/cover... it couldn't get much worse if it had cords hanging off of it.
If I were forced to work in product design at Microsoft, I'd have the keyboard cover be a hard cover on a hinge. It would fold ALL THE WAY around and snap into the back of the tablet, concealing the keyboard keys. So when you're using it as a tablet, it feels like a solid piece. If you need a kickstand, you just partially unfold it. If you need a keyboard, you open it up all the way and swing the keyboard to the front.
Mind you, the keyboard cover would need to be carbon-fiber strong and very thin... or it would piss people off.