The idea of a paid subscription service subsidized with ads sounds reasonable to me. Yes, we are paying, but I assume we would be paying more without the ads. At least that's how I look at it.
Now, my issue with the first episode is the amount of content. If they're going to subsidize the cost through ads, I was hoping for quite a bit more substance. The quality of the content that was there was nice (for the most part), its the quantity that seemed to be lacking.
Like patsu mentioned, video control is crucial. Thankfully, pause and stop are there. FF and RW would be greatly appreciated though. If I understand correctly, it seems to be running as its own application (as a game would). I wonder if it can use the built-in video player to play video instead of its own custom player. That would solve playback issues. I have yet to see a game do this, however, including the ones that have video clips in them. So, I'm guess that's an issue (perhaps that functionality is not exposed to devs).
I like the overall "feel." It feels like its being targeted at a older audience (21+). I don't mean the content, but the setup and design. I can't really describe why, though.
Those are my first impressions after an initial viewing. Haven't checked it out again yet.
I am curious as to how they plan to mold this as they go along. If there's a certain target market already, or if they're trying to reach a broader group at first and then focus it as time goes on based on who's buying.
On a side note, the concept Qcore is based on holds a lot of potential. Particularly if SCE opens it up to 3rd parties. Essentially, allowing the PS3 to play host to digital magazines from any publisher, similar to Home. Have preview issues, and let the user decide what they want to subscribe to.
EDIT
Oh, almost forgot. Someone mentioned that they could not skip the MGS ad. I could for some reason. It was the only ad (outside of the intro Hulk video) that I could skip, btw.