The sheer number of small retailers in this country is staggering. If a portion of them stopped using DOS and Win point of sale and barcode systems in favor of an iPod Touch based system, that would make Apple the primary vendor for small business IP and POS in very short order.
Once dominant in transaction processing and inventory control and asset management applications, the halo effect we saw with iPod to mac on the consumer side would be approximated in large unfragmented business segments.
The popularity of the iPod shocked Apple. The popularity of the point of sale device shocked Apple. This is a wideband business Trojan Horse.
Rocketman
A lot of buzzwords there for a flimsy assertion. That portion would have to be pretty large and would be no "short order."
Edit to add: I like the device - saw that thing about Square last night. The key to making this segment grow will be security. But having the ability to accept credit card payments with a $199 touch and little else opens up a world of possibilities for vendors.