So much hype over a product category that has been a complete and utter failure for many years.
I don't really understand what the purpose of this Newton II is. What niche is it expected to fill?
Is it a really big iPhone for those fashionable folks with really baggy pants and giant pockets or is it a PC replacement for those who are keyboard phobic or who want to communicate r e a l l y s l o o o o o o w l y?
I'm totally guessing here (as we all are), but what if Apple releases several versions over the range of $400-$800 (7"-10"). I can imagine Apple wants as many people as possible getting into the app store for apps, games, books, mags, tv shows, etc. To do that, they will come up with a tablet for everyone (just like the iPod product line). Think iPod nano, iPod touch, and iPhone. I really think they want to get the low-end model as far down in price as possible to make it a no-brainer when people are deciding between the tablet, kindle, nook, sony e-reader, even a digital photo frame. E-readers are certainly not a niche market and having a low-end model at a similar price to the Kindle would be HUGE! 6" Kindle currently costs $259, 10" $489
I could definitely see the low-end 7" tablet (iPod touch) targeted at young children, grandparents, and students as a simple way to email, web surf, read books, etc as an alternative to netbooks. Less features, but a low price point. $400 is the current price of the maxed out iPod touch.
The more expensive models will start at $600 for a 10" screen. If you want the model with a SIM card, and a few extra features, it'll be a little more. Apple will also sell the really expensive OLED model through their website only for those that also bought the MacBook Air with a SSD. As far as OLED screen lifespan, I don't think anyone is going to be using the tablet for more than 3 or 4 years before upgrading, especially those that can afford the expensive OLED tablet to begin with. Just my 2 cents.