I've had this for 3 months and have become obsessed with it -- I use it in a 300 sq-ft room, and it sounds great -- PROS/CONS follow.
Compact and lightweight -- it's just under 6"x6"x6" and maybe weighs a pound? Very easy to transport. It has little rubber feet that grip it to a flat surface.
Surprisingly good, rich sound quality -- I'm not an audiophile by any means, but would rate this very highly for the size and especially for the price. You can't adjust the bass or anything else, but the default is just fine.
Works overseas (100-240V) -- I took this with me while living abroad, and it works great with a simple Euro-plug converter. The plug is also relatively small and light (about 3"h x 2"w x 1"d), and easy to pack.
Charges iPod in its case -- I have the Griffin mirrored case (open bottom) over a 7G classic iPod, and it just barely fits, but it does fit. Also there are several dock adapters so you can use it with other iPod models.
Versatile -- The 3.5mm auxiliary jack allows you to use this with any device supporting a standard male-to-male input cable. It would be nice if a cable were included, but at this price, I can't really complain. Sound quality remains high across devices (I've used it with a Sharp tube TV and MacBookPro). It works with an auxiliary device plugged in, while the iPod is charging in the dock (w/the iPod turned off/paused). So you can use it as a laptop speaker, and keep the iPod docked to charge.
iPod alarm doesn't work with it -- I've had this problem with other speakers too, so I don't penalize this one too much for what could be an iPod-related problem. I use the speaker with my Mac laptop alarm, via a long (20') 3.5mm inline aux cable, and it works well.
Volume buttons are a little sticky -- You have to press them a few times to register a perceptible change. I prefer the touch sensitive buttons that JBL uses on my OnStage and Harmon Kardon sticks. It also takes a few seconds after turning on your iPod for the sound to "catch up" to the existing speaker volume.
No mute button -- You have to press the off button. Not a big deal, but worth mentioning.
TAKE IT OR LEAVE IT
Color light -- The stock photo that iHome uses is a bit deceptive. The colors don't change into solid "flat" colors, but into glowing color-lights. You can let it cycle through the colors or freeze it on the color of your choice. It's fun for 5 minutes, or, if you're 8, 5 years. Then you turn it off completely.
Carrying handles -- The handles are incorporated into the speaker as a curved piece protecting each of the 4 grills. This is a clever concept, but it's kind of disconcerting to scrape the grill fabric with your fingernails when using the handles.