Well, I for one am pretty excited to have this around as an extra device, a kind of big iPod, yes. For certain things the iPhone screen isn't quite big enough; real web-surfing, HD videos, possible games. I'm up for more of the same, yet on steroids. I see this as a travel device, a lie back on the couch device, not a 'tablet' per say. Maybe that will come, but this surely isn't it.
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As for the hardware, 'crippled' is a word that springs to mind. No digital out, let alone HDMI, means that it's not really worth hooking up to bigger monitors. Why VGA in 2010?? Also, the obvious flaws (I'll just go ahead and call them that)- no camera so no video-Skype, no multi-tasking making it near useless for messaging programs (though I'd hope this one gets fixed). I really like the idea of a Kindle that 'does everything', but I'll just have to see if it is much fun reading books on this screen long term.
So, yes, I'm still excited, I think I can get a lot of enjoyment out of it. We'll have to see if it catches on. It won't replaced a laptop in utility, but then again these days the laptop can do pretty much what a desktop can, so it might get used (sort of) the way laptops once were, yet in a much more entertaining way.
What you're talking about here is what I find so mysterious. Jobs famously damned tablets as a fancy way of checking your email while on the toilet, way back when. He's obviously changed his mind, because Apple just released something that does seem "crippled" (which also pops into my mind) and hardly does anything new. Maybe Jobs's about face should be attributed to just how cool it is to be able to interact with the device by touch. Yes, it's cool, and you will get a lot of enjoyment out of it. But it isn't conceptually very interesting at all.