Much has already been said about how the game plays, so after spending some hands-on time with the near final five playable levels -- about a third of the game -- 1up have some thoughts:
#1 -- Playing Lair, one word really comes to mind: Epic.
Seriously, the experience of flying through these stunning, expansive landscapes with tons going on all around you and a fantastic orchestral score playing underneath is really quite something. You've simply not experienced anything like this before -- certainly not on this scale.
The lighting and weather effects (lightning and rain were specifically impressive), the draw distance (you can see for miles and miles), the amount of on screen action at times (tons of other dragons flying through the air, ships in the sea, and warriors on the ground), and the ability to simply and seamlessly switch between fighting high in the sky and down on the ground -- this is absolutely a next generation experience.