Great inner works, but terrible outer shell. Avoid this unit. The Gaggia Classic is worth the extra $100
Positive Product Points
The machine made excellent espresso. Steaming/frothing milk was fine. The 58mm portafilter is definitely the way to go. Heating up was pretty quick, and the switch between steaming and brewing temperatures was fine -- a bit of a hassle but unavoidable at this price.
In the end, it makes a fabulous espresso.
Negative Product Points
My power button broke within a few weeks and the machine became unusable.
All the buttons, housing and other exterior parts are ridiculously flimsy and cheap. The problem looked like a result of cheap and inattentive design, not a manufacturing problem, and so I have no confidence that other units of the same model would be any better. It is a bit of a scandal that Gaggia keeps selling this machine.
It is very cumbersome to remove the water tank in the Baby.
Amazon.com took it back and I bought a Gaggia Classic instead. I've been very happy since then.
Detailed Commentary
The espresso quality was great, but the construction of the machine was extremely poor. At $400, you should expect a machine that will last years, not weeks, and I can't see this unit doing that.
Gaggia sell the same inner works with different housings and buttons at different prices. After my terrible Gaggia Baby experience, I shelled out an extra $100 to get the Gaggia Classic. The Classic also makes consistently great espresso but has a much sturdier feel. The buttons are much better, the water tank is much easier to get access to, and it feels like it will last a while. I ended up annoyed at having to move up the price chain, but at least now I'm enjoying good espresso while being annoyed. The steam knob on the Classic is also a huge improvement over the weird 'pimple on top' knob of the Baby.
Avoid the Baby; get the Classic.
Buying Experience
Amazon was very helpful and prompt and accepted the return no questions asked (and they even paid the return shipping).