Thanks to a quick mention on Pat's blog I investigated the Nook Color using Cyanogen 7. It looked very promising so I had to get one and try it. So far I love it. I rooted it and then installed CM7 nightly (v28 currently). If you want a nice android tablet on the cheap, I recommend it highly. You'll be missing a camera (got that on my phone), wired headset mic doesn't work which I'm hoping they can get it going as I'd like to use it for skype calls and youtube is just a tiny bit choppy, but that is being worked on.
If you want something to read the news, books, listen to music, watch videos, skype chat, email, browse it works perfectly in that regard. Wireless tether to your phone for 3G, and wireless tether to use your phone's GPS works great (from my Droid original anyway). Adobe flash (after you get it off the market) works great too. The processor is 800Mhz and can be overclocked to 1Ghz, so far I've left mine at 800, but haven't tried any games. Someone did a youtube video of the N64 emulator and it looked very smooth.
I have the brightness turned all the way down to like 14% and it is still quite bright. I didn't know if I'd like the 7 inch size, but after using it and then playing with an ipad 2 I think that the 10 inch is just a little to big.
I will never spend $600 on a tablet. I dont have that kind of cash. But $250 that does 99% of what I want (1% is making skype calls) is an awesome deal. They are also working on a honeycomb build. According the forums the bugs on the honeycomb build are mostly honeycomb related, not Nook related.
Thanks again to Pat. I would have never knew it existed if it wasn't for your blog. I had some Best Buy cards left over from Christmas which helped a little. The only thing I have to do now is buy a couple books on the Nook store because I feel so guilty. I'm sure B&N are selling this thing at close to cost.