Yep, capacitive touch screen. Personally, I think the screen size is ideal... it's easier to hold than an iPad. It's not especially powerful, but it's nice for web browsing and playing Angry Birds :)
We bought a bunch at work and installed Cyanogenmod for one of our projects. It's the right size, and waaaay cheaper than an iPad. For $250, I'd recommend it for a general purpose (wifi-only) Android tablet. SSH is nice on it too.
I own both an NC and an iPad, and I'd disagree with the assertion that it's easier to hold. Even though it's glass, the flat surface coupled with the mostly-flat back of the iPad makes it a lot easier for me to grip.
Even though it's Android, the price is certainly right for an entry-level tablet.
I think it's a bit bogus to compare it to the iPad. It's slower and smaller. But I accept that because it was so much cheaper - cheap enough that I could have got 2 or 3 of these for the same price as an iPad2.
I use mine to read recipes when I'm in the kitchen, and for single-purpose tasks like planning journeys using the Google Maps app. For these limited things, it's absolutely excellent.
