Using the multitouch gesture pad felt like the next step in Apple's trademark Macbook mouse replacement (the Trackpad/Touchpad), rather than an iPhone screen being shoved into a laptop (as it was pitched at the keynote). For the most part, it's responsive. We found hiccups when scrolling through an image in iPhoto (zoomed), but our guess is that such issues were do to processor power and not the pad itself. Pinching (zooming) in to photos is fantastic, especially when you are in a multi-picture view in iPhoto (allowing you to scale the photocentric UI with ease). Rotating seems fairly flawless. Two second verdict: great, but not an iPhone. It's more like Touchpad 2.0.
PS. The Macbook Air feels like a giant iPod Classic. So good. Video by Chris Mascari.