I really haven't contributed much to the tablet discussions as I personally have no interest in owning one, no matter what the final product (if any) looks like. However, I did think of a reason why people would want it. I would assume its going to have an SSD in it, so it would appeal to those who don't want to dish out the extra money to have SSDs in notebooks AND want a bigger screen than iPod for movies. I would take a guess that this would mean the end for the iPod Classic as the storage would probably be similar, possibly even larger.
It'll really be aimed at those who want their media portable. I don't think it'll be meant for a notebook/computer replacement but instead those who want a larger iPod. Plus you throw in the e-reader capabilities, and I can really see this being a popular product.
Personally, I prefer old-fashioned books and movies on larger screens, but if I did regular traveling I'd probably be all over this.
I agree.
For me, it's not a replacement for my notebook, but rather an internet/eReader/media device. The eReader is crucial, because all of my text books are going to be PDF files.
EDIT
Oh and Flash would be frickin' splendid, but I won't hold my breath.