What a good idea - Apple Time Capsule

So far, one product has really stood out for me at Macworld 08 - and that's Time Capsule. 

Time Capsule sounds (in theory at least) like a great idea (I'd be interested to see how it works in practice).  A wireless access point come external hard drive.  Why have we not seen these before?  It sounds like Apple has done what it seems to do best - taken a problem and applied a software/hardware solution to it.  I'm certain that the integration between the hardware and software will be seamless.

There are two versions - 500GB and 1TB capacity.  Storage is provided by server-grade hard drives (I'll be interested in finding out what drives are used).

Both versions come with 802.11a/b/g and 802.11n draft 2.0 WiFi standards (supporting WPA/WPA2 and 128-bit WEP).  It has a gigabit Ethernet WAN connector for hooking up to a DSL or cable modem and three gigabit Ethernet LAN ports.  Also on the back is a USB port for connecting a printer or spare external hard drive to the Time Capsule.

I could see myself getting one of these.

Price: $499 for 1TB, $299 for 500GB.

Thoughts?