My observations on tonight's competition:

The way Watson "sniped" the daily double immediately upon taking control of the board was very interesting to me. I suspect that it was programmed with a statistical distribution of past daily doubles (this site strongly suggests that their placement is not random). Otherwise, its behavior seems inconsistent, given that afterward it went after the 200-point question in each category, presumably in order to get a better read on the qualities of each category.

Its lack of audio input led it to repeat a wrong answer, which was one (probably predictable) flaw. It had trouble with the decades and alternate word meanings, which isn't surprising given the explanation that its algorithms are based on word association. Also, it needs to read more Harry Potter.