I see huge potential for this. However, I found the demonstration of the note cards to be a loose first attempt. There should be an option to categorize different note cards by color, and there should be a 'holding tank' for cards you've mastered, so that you the student can focus more on the cards with the info you're having more trouble with.
Hopefully, with updates, it'll get there.
Also, as someone not yet on 10.7, I was disappointed to find out that I can't download iBook Author.