My take, so far:

I'm pretty sure Amazon rushed this to market in an attempt to steal Apple's lime light next week. The site is pretty confusing and difficult to work with. It's so difficult to even figure out if you can rent something or only 'buy' it. The download and playback experience don't sound any better. They may wish they had waited until they had it right in the long run. This is the period of time where people will just give it a try. But if they hate it, they won't come back, and they'll tell all their friends.

It's good that a large retailer is doing this at all. It's has got to open up more possibilities for the market as a whole.

Not Mac compatible

Boo Apple, Boo Microsoft, Boo Amazon.

I'm OK with this not working on iPods or other mobile devices. I just don't want to watch much on a tiny screen.

The licensing and pricing is all over the place. I guess that's the way it has to be, but geez, I say TV episodes to RENT for 1.99 per episode.

The terms of service suck. I understand that for renting they've got to draw the line somewhere. But 'buying' is really just another form of renting. It's just for a longer indeterminate length of time, but there is no guarantee, and it won't be forever.

Watch while you download! Very nice. I wish iTMS had this...

You can download your videos again later! Very nice. I wish iTMS had this...
I guessing that Apple's movie store will kill this, though I hope they can pick up some of the nice features...