Sorry it took so long to get this post up, but I have a few other things that had to be taken care last evening and I didn't get home till late and pretty much went straight to bed.  At any rate, we did a small demo of the hardware last night, here is the test data I used, which I pulled from one of the getwork servers of my pool:

Data: fd90c721557226679bfc01bc971be894ec08137d0f36fd923f822e4743f954da
Merkle: 9d0e5b394ed6ae311a0f61b1

Data: e4f4a3eb23855f185379d5833f0eabb9daee8483e43d39a6a9b3888882bfc0fa
Merkle: 29a9690f4ed6aecc1a0f61b1

Both of these were fresh out of my pool:

The first test should return one nonce of: 22D5485D   
The second should return no nonce value. 

I would ask that someone else validate my test data as well, to be sure what I have is accurate. 

In any case, the first test ran at a hashrate quite a bit lower than projected, but returned the expected nonce on the first round and zero nonces on the second, which was an accurate result.  After this, I did in fact witness a faster test at a speed close to the projected rate, but it was slightly unstable, often returning extra nonces that are invalid.  The explanation I was given for this was plausible and equally plausible that they could work the issues out.  Power consumption for the development unit was substantially higher than projected, but still well within a reasonable amount (as in, it wasn't taking 200 or 300w; it was much, much less). 

Someone asked that I measure the actual chips - they are 30mm^2.

There were some technical difficulties that prevented us from conducting a more thorough test given the time constraints I was under - though BFL was more than willing to take whatever time was needed, even offering to come to my house this evening once they fixed the technical issue that prevented us from doing a comprehensive mining operation - though I am told it's fixed now and ready to go.  But in either case, I feel that the test we conducted showed a POC that adequately demonstrates that at least the hardware does what it's designed to do, if not at the speeds or power consumption stated at the moment. 

Another demo once they get some of the technical issues worked out is planned for the near future (no definite date at the moment, but within a week or so I would think - this is just my speculation) with a fully automated mining client running and submitting work to my live development pool. 

My conclusion is that even if the units were to ship with the lower hashrate I tested and the power consumption I tested, they would still be extremely viable pieces of hardware and are also superior to the currently available public offering(s).  Would they be worth $700 as witnessed?  That would be up to the individual to make that decision, but I personally feel that they are at least within the ballpark of most peoples definition of reasonable.  Any improvements on what I actually saw will increase the value, and from the explanations and technical details I received, I do not see any reason that the final product won't be substantially improved from what I actually tested tonight.