The three main things I take from this:
1.) Andromeda definitely exists. As far as I know, this is the first time a Microsoft exec has explicitly confirmed it's existence. And it's Panos himself!
2.) Panos himself has taken a personal interest in this device. That doesn't mean it's definitely going to go to market. The Surface Mini didn't, and Panos spoke fondly of that device too. But it does mean that the visionary behind much of what the Surface line has become is taking ownership of this product. That's reassuring.
3.) The two things that Panos has identified as being hurdles are A.) The development of Windows Core OS (software) and B.) The appeal of the specific hardware category for the consumer.
This is easily the most revealing, exciting, and promising news we've had on Andromda.