The majority of the market this is targeting doesn't "do work" on computers, they consume media. I remember after first getting my iPhone 2g, and playing with

The majority of the market this is targeting doesn't "do work" on computers, they consume media. I remember after first getting my iPhone 2g, and playing with it for a day straight, when I went back to my laptop I wanted to manipulate the UI by touching the screen. When I say "wanted" I mean I uncousciously reached for the screen on a couple of occasions. I got over that quickly, but it made me consider what this form factor would be good for and whether it would sell. I agree that this machine won't replace the laptop as a work machine. I do think that it may be a better solution, from a UI standpoint, than the current netbooks on the market. Have you seen people at coffee shops typing on those things? I know it will be better than a netbook in bed or while laying on a couch, which is were I find myself using my iPhone and not my laptop. Also, $700 isn't that much when you consider that the Kindle is $300 and used to be $500. Think how much more you will be able to do on an iTablet, or whatever you want to call it.