Kill off? nah, not kill off---transfer to a new, popular form that will expand customer base.
Apple can't make anything that inexpensive without a LOT of loss. Since the size is 10" it's far bigger than an iPT which is $300, and it will have greater function than an iPT. Even if this device is an ultra-thin, ultra-stripped down laptop which is like an iPT's smarter cousin and retard of the laptop line, it will still be well over $700. Maybe they'll fit it between the $999 laptop and the $299 iPT... don't expect it to be lower. This is Apple. It'll be higher. $799 for a large iPT, $1099 for a stripped down notebook-as-tablet.
I only say this because it tends to be the way of Apple, and someone will have to brace you for the eventualities.
Most likely Apple will do something BETTER and expect big cash for it. Most likely the miniaturization of the Air and iPhone have been leading to what is to come in the "netbook". Expect less size, less peripheral docks, less user modification, good internal function, and a large price.
10:1 -- it's a unibody design with RAM and drive soldered directly onto the main board so it can be well under .5" thick. The battery is locked in and difficult to remove and work with, so let's hope they get that battery right.