As much as I would love a real Apple tablet, and love some of the mockups/photoshops and would love to get my hands on one of them... I often thought about the comment you made. Unless Apple were to acquire Axiotron.
That said, Apple can still compete in the smaller pocket sized tablet/touch PC's out there. I mean look at the Sony VAIO UX and all the companies making similar. However, with them being the size of the iphone - it would compete heavily with the iphone. However, the price tag on one of these Sony's is $3,000. A way too expensive for me, but look whats built in:
Weights and Measurements
Dimensions (Approx.) : 5.91(W) x 3.74(H) x 1.27-1.50(D)16
Weight (Approx.) : 1.2 lbs with standard battery16
Hardware
Camera : 2 Built-in Cameras (front: 0.3M pixels and back: 1.3M pixels) Built-in microphone
Keyboard : 64 keys with 0.15mm stroke and 8.6mm pitch
General
Action Buttons : Mouse Left, Mouse Right, Scroll, Magnify Screen (Zoom In/Out), Capture, Center Button, Wireless LAN On/Off, VAIO Touch Launcher
Computer Type : Micro PC
Pointing Device : Pointer
Security : Biometric Fingerprint Sensor
Type of Use : Ultra Portable
Power
Battery Type : Standard Capacity Lithium-ion Battery (VGP-BPS6)
Estimated Battery Life : 1.5-3.5 hours7 (Standard Battery) 3.0-7.0 hours7 (Large Capacity Battery)
Power Requirements : 41W+10%
Solid State Drive
Capacity : Ultra ATA Format: NAND
Audio
Sound System : Windows® sound system compatible with Built-in monaural speakers
Service and Warranty Information
Limited Warranty Term : 1 Year Limited Warranty8, See actual warranty for details.
Online and Email Support : Support available from
http://www.esupport.sony.com/EN/VAIO
Telephone Support : 1 year (toll-free technical telephone assistance, available 24/7)9
Graphics
Chipset : Mobile Intel® 945GMS Express Chipset
Processor : Intel® Graphics Media Accelerator 950
Video RAM : 251MB Total Available Graphics Memory15
Processor
Front Side Bus Speed : 533MHz
L2 Cache : 1MB
Speed : 1.2GHz1
Technology : Intel® Centrino® Mobile Technology
Type : Intel® Core 2 Solo Processor U2200 Ultra Low Voltage
Networking/Modem
Bluetooth® Technology : Integrated Bluetooth® Technology5
Ethernet Protocol : Fast Ethernet (RJ-45) using Port Replicator or VGA/LAN Adapter
Ethernet Speed : 10Base-T/100Base-TX
Wireless LAN : Intel® PRO/Wireless 3945ABG Network Connection (802.11a/b/g)3
Wireless WAN : Integrated Wireless Wide Area Network (WAN)13 accessing AT&T national wireless EDGE network with SmartWi technology. (Wireless WAN and Wireless LAN radio do not transmit simultaneously)
Inputs and Outputs
DC-In : 1
Headphone Jack : 1
Memory Stick® Media Slot : 1 - Supports Optional Memory Stick Duo media with MagicGate® functionality
Microphone Input : 1
Port Replicator Connector(s) : 1 (Bottom)
USB Port(s) : 1 (2.0 compliant)
Display
Resolution : 1024x600
Screen or Display Technology : Wide SVGA LCD, Touch Screen
Screen Size : 4.511
Software
Operating System : Genuine Windows Vista® Business12
Security and Anti-Virus Software : Norton 360 All-In-One Security 60-day Trial
Sony® Original Software : VAIO® Touch Launcher *Please access VAIO® Help and Support from your PC for a complete list of software applications and trials.
Supplied Software : Microsoft® Works SE 9.0 w/ 60-Day, Trial Version of Microsoft® Office 200710 Microsoft® Streets & Trips 2006 Essentials PenPlus for VAIO
Memory
Installed : 1GB (1GBx1) PC2-3200
Maximum : 1GB
Speed : 400MHz
Type : DDR2