Love it, works like a charm with Kinect as the interfaces are the same for the controller and Kinect so you can use either

All the extra apps are cool, but iPlayer is the one I want the most and its not out till "early next year"

Might sign up for lovefilm now or Zune.
The cloud storage bit is for your profile and saved games, get just over 500Mb for the saved games and you can login to another xbox, download your profile and saved games and pick up where you were