I received my Sony Mylo today and so far I give it thumbs up!
My particular needs are very specific. A portable Skype device with basic IM and Web capabilities. Essentially something to keep the Cingular billing department eating mac ‘n cheese instead of fillet mignon.
The device is sturdy and well designed, though slightly childish (appropriate considering the target market). The screen is clear and bright with great antialiased text.
The keyboard is usable but would benefit from a slight increase in size. For those with large digits it would be nice of the sliding screen moved about 1/8 to 1/4 of inch further. It can interfere slightly with the top row of keys.
The included software works as expected but lacks some advanced features common in the desktop counterparts.
Noticeably absent are AIM and MSN chat clients. Hopefully that will be address in a future update.
Media playback, both Audio and Video, works as advertised. Criticism for lack of support to iTunes and other DRM-based services is pointless. The device plays most common open formats well.
I will post more in a couple days, but so far this device lives up to my expectations.

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