Outside of the amazing marketing and stance that amazon holds, this really doesn't seem like much. I don't see a lot that my parents would get excited about at least, and if they aren't the market, I am not sure who is.
If it can web browse with Flash then (modulo the dead end hp touchpad) it's the cheapest tablet web browser that can play games on facebook. My wife is a long time Apple fan since she was a Graphic Designer, but she turned her nose up at the iPad due to lack of Flash and some specific games she wants to play on Facebook.
It's not much compared to the iPad, but not everyone can afford the iPad. The $199 price point puts it in a different category. Heck, at $199, it's the kind of gift I'd easily buy for a friend or family member's birthday.
