Only got my new stylus this morning, so have only played with it for half-an-hour or so.
First off, delivery speed was much better than Amazon's standard-delivery average: ordered on Wednesday, arrived on Friday. Top marks for deliver, Palo!
Second: quality. For £3.49 I wasn't expecting gold-plated, so I wasn't disappointed. For £3.49 I was expecting a cheap quality, entry-level capacitive stylus to use on my new Xoom; to play around with and see if I liked using it. I am (so far) pleased. It's a bit shorter than I imagined (but then again I am a man) but not short enough to be hard to comfortably handle. It seems to work exactly as it should on the screen - the same as a finger but without the grease-marks. Just given it a test on a paint app and it works a treat.
Third: durability. I can't really speak about this aspect, not having used it even for an hour yet. The body will last as long as any pen body will last. The tip - thin, non-tacky, rubbery-plasticky material - should last long enough for you to get your money's worth out of it, and hopefully a lot longer if you don't abuse it.
Conclusion: Even if this stylus only lasts for a couple of weeks, it will have paid for itself simply by saving me the time of cleaning all the finger-grease off the screen every few hours. I can now input my "draw pattern to unlock" without leaving a pattern-shaped mark on the screen for anyone to see. I can use my Xoom *and* eat crisps at the same time! Well worth it!