As I noted, I think one liability for the Nikon 1 is its pricing: it's overpriced here in the US, and wickedly overpriced in some other parts of the world (the UK, for example). That's not just in relationship to competitor's products, it's in Nikon's own pricing, too. To wit, if we graph price on the X axis and capability on the Y, we get a graph that looks something like this:
It's a big step up from top Coolpix to low-end 1 (that name is just terrible for media--it disappears in text, and I'm not going to write Nikon 1 every time I refer to the model), and it's a backwards step down from the top-end 1 to the low-end DSLR. I still say this pricing won't stand up in the marketplace.