@Paul
I don't dispute the remote control is powerful, but much of it's power will be left to the community to implement (ie. IR support for other devices) which basically means there's a good chance that it's power will not be utilised at all. For $299 I would expect more capability out of the box and not leave so much to chance.
The lack of buttons is the biggest problem though, it really does restrict it to Squeezebox duties and not much else. I have a Squeezebox/3 and can't see myself forking out $299 for one of these, whereas if I were buying a Squeezebox from scratch I would consider it - so realistically it may only appeal to new buyers, or existing owners with multiple Squeezeboxen already installed. Existing single SB3 owners are unlikely to be tempted due to the high price/restricted functionality.
But if it had more buttons, and could control the rest of my AV kit I'd be very, very tempted.
If they released the application running on this remote on my Nokia Internet Tablet (after all, the remote is just a WiFi enabled ARM computer running the SqueezeOS interpreting Lua) I'd be interested in paying for the software, say anything up to $30. But the Logitech hardware is overpriced for what it is - the Nokia N800 is a more capable ARM computer and can be had for $230.