Jobs made it clear that iPad is not going to replace smart phone or notebook. It was designed to fill in the gap between the two. I believe in few years iPad can be equipped with hardware as good as today's notebook and cheaper. In two years, do you think apple can put in 2GB memory, 200GB storage, 2x faster CPU and GPU with same price and battery time? If iPad has this kind of hardware, it will become the future of notebook. iPhone OS or full OS X? Maybe it is more of marketing decision. Apple still want to make more money on macbooks. Let's hope iPad competitors can do good job to keep apple moving fast.