Works like a charm. Been using it every day for 2 weeks. Sometimes you get some short lags from the io problem, but for my use I seldom notice it.
I upgraded from the TF101 and so far, this blows it away (which is what I would expect). I haven't had any significant lag or freezes, everything seems to run very smoothly. Browsing is definately a significant improvement. I would get a number of lags browsing sites like Facebook from my TF101, this scrolls through it like butter.
My only complaint would be that some apps are not ready for primetime with the new 1920x1200 resolution. Some apps, like IMBD work just fine, but the font size is very small. Not a huge problem right now, but I suspect these apps will need to be adjusted over time. Thumb Keyboard also had very small fonts on the keyboard itself, but that was adjustable at least.
Some other apps are more problematic....for example, I fell in love with Go Launcher HD for Tablets on my TF101. Works fine on the TF700, however some of the widgets/icons overlapp the controls at the top of the screen. I couldn't find a combination of grids-size that would work for me, so I went back to the stock launch for now.
I suspect all these things will get worked by the app developers as these higher resolution displays take off....
-Chris