right, so you want a full spec OSX touch screen tablet computer for about the price of an iphone.
What is the current rival at that price?
It IS a computer. The only things holding it back from being a full scale OSX machine is that Apple won't install the full version of the operating system and maybe throw in a USB port on the thing. The Mac Mini is also $600 and it's a full scale computer that's only larger in thickness and it has way faster hardware on it to boot and much larger hard drives. Throw a screen on that thing and you're done. Obviously, Apple can easily afford to make this tablet for well under $600 or they couldn't sell it for that much and make a profit. Given their profit margins in recent years, I'd guess the thing costs around $350 to manufacture for the $600 model. OSX already exists so the development cost there is negligent for a new model and they would not have had to modify iWork to run on it.
Now if you want a PC Rival, it depends on what you're looking for. They've had reversible notebooks that turn into tablets for may years now. They have sub-compact computers with similar processors that have full keyboards and can run full versions of the operating system. Of course, if all you are looking for is a book reader (dumbed down operating system), Amazon has Kindle2 for a couple hundred less.
Like I said, the iPad could easily run the full version of OSX for a neglible cost to Apple and they could run the iPhone OS on top of it like Front Row is the original Apple TV interface (more or less) running on top of OSX. Then users would have an actual CHOICE about what kind of experience they would like to have. The problem with Apple (since rehiring Steve) is that Steve is a control freak and he couldn't care less what customers actually WANT. Why is there no "theme" preference panes for OSX? Because that's how Stevie likes his Mac! There isn't even a button to switch to a 2D dock in OSX because Steve doesn't like it no more. It's out of date just like DVDs and especially Blu-Ray, which was DOA and a Bag of Hurt!
Meanwhile, the rest of the world is enjoying 1080p movies on their notebooks while Apple can barely play a DVD and Steve might just remove that support in the next OS since it's "dead". Never mind the SD movies on iTunes are sub-DVD quality and don't even have Dolby Digital sound. I'm sure Steve likes the superiority of monaural sound so OSX V10.7 (aka Tabby Kitty Touch OS) will showcase the superiority of mock vinyl 78's in iTunes played through miniature horn speakers because that's kool Daddy-O and Stevie likes that kitschy black turtle-neck "yeah" beatnik vibe (snaps fingers in front of microphone). You can get with it or get something square! (like that Bill Gates "geek in a bow tie" vibe Windoze thing