Exactly. Bring on the $399 7-inch iPod touch, and I'll be first in line.
I agree with QCassidy above. No one form factor will "win". It's like the iPod and Apple TV: They're
complementary channels for different environments. Kindle-sized for hour-long sessions at home. Iphone-sized for a quick fix on the go.
Amazon likely realized they NEED different form factors to succeed in e-books. Rather than re-invent the wheel (and then convince folks to BUY it in a down economy. And then need to support various hardware platforms long term) they just jumped on the Apple bandwagon.
Nice move.
Here's a thought experiment: Imagine Apple invented and marketed the AppleTV
before the iPod came into being. The iTunes store (content sales) would be no big deal (much like the Kindle), yes?
Next, after lackluster sales, imagine they invent the "AppleTV-to-go" (ie., the iPod/iPhone) with all the content and distribution infrastructure
already in-place. How do you think sales will do
then?