You see them quiet a lot in the city here (Barcelona). Though they might be good for scooting around town because they´re pretty light weight, I wouldn´t feel comfortable getting out on the highway with this puppy. It al looks like a cheap version of the 750 AERO. I personally don´t realy like the finish, thinking that Honda tried too hard to reduce costs to keep the price down. And if it´s just for going around town, I´d buy a scooter, they´re cheaper and easier to handle.
Just my personal opinion.
The 125 Shadow is Honda's attempt at replacing the Rebel in some countries...the 250 Rebel is available in 125cc guise and the V2 bike is aimed at replacing the 125 version, as most countries that get the 125 Rebel stopped carrying it whenthe Shadow appeared.
It's merely a licence thing in Europe where you can ride a 125cc bike on your standard car licence in many countries, making this a huge market. In Germany, for instance, you can ride one when you got your car licence before some odd date in 1980- resulting in many oldtimers getting back into the habit on (relatively) small budget (considering a bike licence will cost you more than two grand!). Some even choose to turn it into a (believe it or not) fulldresser; I'm sure you guys will love this: http://www.louis.de/_102e0e0404b3de4f78071c52062e71a553/bikedb/bikespecials/pdf/1113.pdf