Magnesium alloy
? Light weight
? Low density (two thirds that of aluminium)
? Good high temperature mechanical properties
? Good to excellent corrosion resistance
? Looks sexy
? Longer Die Life. (Magnesium's low heat content and low affinity for iron reduce the effect of thermal fatigue and die erosion. Dies last as much as two to three times longer, than those experienced with aluminium).
It's hard to get any real information on VaporMg. All we have is marketing materials, which are usually written to exaggerate all the positives and ignore all the negatives, while just barely slipping by as truthful. That is all we have...
You've listed the desirable properties of most magnesium alloys. That you haven't listed any of the negatives, which every material has, shows that it isn't a comprehensive assessment. Anyway, based on what I've read, the Surface's shell is injection moulded out of something else than VaporMg, so I'm not sure any of those positive properties actually apply.
Apparently, VaporMg is just the coating that is applied to the shell afterwards (the PVD treatment). Just like any coating, it too can crack and scratch. Particularly scratching is being widely reported. Anodized aluminium is terrible as far as scratching is concerned, which is why I wouldn't want a shell made entirely of aluminium, but as far as I can tell, VaporMg isn't much better (if at all). IMHO if the shell isn't scratch resistant, then it's not good enough for a smartphone. If that is all I can have, then I'd rather have a polycarbonate shell... yes, that will mean the shell must be somewhat thicker, but at least I don't have to slap an ugly case on it, nor worry about scratches, because although polycarbonate scratches just like any other material, scratching isn't as visible. As far as scratching is concerned, the self healing material on the LG G Flex is probably one of the more interesting coatings currently being applied to smartphones:
LG G Flex Self Healing Demo! - YouTube
Anyway, I'm hoping for something more impressive than a VaporMg coating, Aluminium or Polycarbonate. I suspect that ceramics would also be a very interesting choice, which is used as a component of tank armour, or virtually scratch proof Swiss watches... probably too expensive for a smartphone, but it would get me far more excited than a VaporMg coating: