From what I can see from the Youtube video, the cool thing about it is that it's very visual. You see the person's face, tap on it and you can either call, SMS, or access that person's Facebook page. It seems like there's connections to Facebook, MySpace, and Windows Live.
As all the status updates are live and all pictures are stored in the Microsoft cloud, I believe there'll be an issue if you use it in reality, at least in Singapore. Your phone will lag because like it or not, Singapore's 3G or Edge signals are VERY slow. So far, I've never gotten a download speed more than 1.5Mbps. My average speed is usually about 0.7Mbps. Good?? Yeah right.
I won't know how Kin will react to such slow speeds but my guess may be that you may find your phone starting to lag with every touch because it's trying to get a connection to update all you status feeds. My guess though.
Below is the video of a demo on Microsoft Kin 2. Enjoy.
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