1. Storage is not an issue as you can use USB storage or insert a 64gb Micro SD card.
I suppose that's true enough, but even with the capability of adding more storage, the OS taking up 16 GB seems excessive for a mobile OS.
On the issue of aspect ratio, I agree with zhenya. Watching movies and TV shows is not the main thing I do with my tablet, a majority of my time on the iPad is spent on reading text, either ebooks or the web. Obviously, that is not the preference for *everyone* -- some people will consider watching videos to be the more important activity they do with a tablet.
The question for device manufacturers, of course, is which group is larger, because by targeting the larger group, their device would sell better. Apple went for the text-centric group, most Android tablets for the video-centric one, and Surface is an interesting case, because if I'm understanding Microsoft's intentions properly, the length of the Surface was determined because that was the minimum length they needed to fit in a functional keyboard. Okay, so far so good, but then they picked a width such that it creates a narrow aspect ratio -- but why? If they had made the screen wider, then in turn they would have had room for a larger trackpad on the keyboard cover, which is something people have been saying is too small, not to mention that the Surface is supposed to be a productivity device, and if so, shouldn't you favor a text-centric aspect ratio?
I did drop by a Microsoft popup store on Sunday, and played with the Surface for a few minutes. The Touch Cover was pretty much a no-go, but I could type decently on the Type Cover, and if that had been around in the early days of my iPad usage, I might have been envious of it. But the thing is, in the two and half years I've been using my iPad, I've gotten used to using it without a physical keyboard, and by now, that's my preferred mode of using a tablet. Like right now, I'm sitting on my sofa and typing this with the iPad on my lap, switching between typing with all my fingers or typing with my thumbs as the mood strikes me. In order to use the Surface's keyboard cover, I'd have to find a place to prop it up -- I doubt I could type on the keyboard cover on my lap.
A Surface with a keyboard cover might be a good choice for someone looking for a super light lnotebook, and I'll be giving the Surface Pro a good look when it comes out. But IMO, it isn't a better tablet than the iPad and Android tablets already out there.