I still don't see the purpose... Unless Jobs does. Seriously, either Schiller introduces this thing and people boo (just like at WWDC) or Jobs does and his RDF makes it the #1 hot item on everybody's Christmas List.
This is what I see (I've posted this elsewhere):
Here, we have the advent of the personal entertainment device... who wouldn't want one (or some).
Consider you are on that vacation trip (train, plane or car). The kids are in the back seat(s) each with his own personal device-- one is watching a movie, another is playing a video game, the third is listening/watching streamed AV Albums or TV. Or they can all interact and share (tweets, walkie-talkie/chat, multiplayer games, AV playlists). Your spouse, in the passenger seat, is reading a book/magazine, or monitoring trip schedules/travelog, or checking security/status at the home front. Meanwhile, you are getting turn-by-turn driving instructions or heads-up of points of interest along the way.
Then, vacation over, you all go back to your daily routine (business stuff, schedules, home stuff, sports, events, entertainment, school/college courses). Each of you needs to take your personal stuff with you, everything from contacts to text books).
So, really, this is for much more than entertainment... it is for most of the things you do.
The interesting thing is that one device does all these things, tailored to your, my specific needs, in any setting... at any time.
Just for the the kids:
--kid locater: I-am-here, where-where-you;
--replacement for text books, lesson plans, note taking, homework assignment/preparation/submission, drill & practice;
--medical allergies & records;
--music lessons, instrument simulation;
--personal TV, music player, movie player, game player; ad nauseam.
Who, in the family, wouldn't need/use his own, personal, one of these and the services it provides?
You have at your fingertips all the worlds content: music, movies, books, games, etc. All in an immediately
useable form The person next to you, does his own thing on his own personal device.
Point is, Apple will sell hundreds of millions of these. Those providing services or content will have a large, universal, install base to sell into.
All of this for, say, $800 per device 1-time cost (instead of buying dedicated music players, game players, book readers, netbooks, etc).
And, say, $100-$400 per month, total, for all the members of the family unit to access the services. This could be subsidized by advertising, and/or offset by replacing current, monthly, telephone and cable television costs.
Merry Christmas,
everyone!