But the slight bit of missing performance (compared to a $300+ low-end celeron or AMD laptop) becomes apparent when you do things like make a video full screen (takes 3-10 seconds), scroll on a JS-heavy page, or have a number of apps open at the same time and switch between them while one of them is doing some heavy processing.
It's definitely tolerable and for the price the Pi is a great little computer. Also as soon as I get a few more CMs, I'm going to run some of my web stuff on them from my home since they're silent, power efficient, and adequate now unlike previous generations.
But it's not necessarily a standard more expensive desktop replacement for the majority of people yet. As it stands today I think this would be a great computer for a family, a kid learning how to type and use a computer, that sort of thing. Additionally, it would be an excellent computer for those who can't afford a $300+ laptop but already have a TV or can pick up a $40 monitor off Craigslist.