I have the keyboard and the pencil, along with Apple's silicone case. This thing is pretty slick.
The keyboard is great for typing on a flat surface, a little weird but useable on your lap. The keys have a decent amount of travel to them, more-so than I figured they would. The folding is a little weird but you eventually get used to it - I can normally open the cover, fold out the keyboard and attach it in one motion now. It doesn't add all that much bulk to it either. I do wish it had a row of function keys on it - volume, brightness, etc. but otherwise I'm really happy with it.
The pencil works incredibly well too. I'm not much of an artist but it works well in Pixelmator and a few other applications I've played around with it in for art. Note taking is amazing on it. Palm rejection works perfectly too from what I've seen. It works really well for precision input too - a 'mouse' of sorts.
Overall, I'm super happy with it.