Let me preface this by saying that I think all of the people who have posted in this thread are thinking about the evolution of the personal computer in a critical and thus laudable manner. The only thing I would add (and have in previous instances) is that a touch-based interface is not necessarily meant to replace the current mouse and keyboard, but to complement it.
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I think you are absolutly right. As I sit here I can think of several uses ways that I would use such a device daily.
1) At work. I work on the salesfloor of a bedding company. I could look up prices, cost and write contracts with the customer without breaking the moment up by walking to my pc.
2) Portable media. Movies, TV, and Music to go...thank you very much.
3) Web browsing.
4) Interfacing. Use it as an interface for audio-avdio programs as shown in patents.
5) Email anywhere.
I don't want this to replace my imac, but I don't want a toy either. I want something that is functional and portable. I want something that helps me do basic computing anywhere, and create everywhere.
I think that is the genius behind apple computers. Right brained people get them, want them, use them, and create with them. They are made to produce. This format simply makes it easier for people to do so.