. . . what anyone else has to say, especially other competitors . . this is NOT about a phone or an iPod or whatever.
This is a 'computer'. This is the FIRST of MANY devices that will leverage the UI and usability of the 'iPhone'.
Scale this up to 7 x 9. I guarantee AAPL has a device on a desk in the workshop running this version of X and more complex apps (GarageBand, etc)
Scale this down to a mini. Remove all functionality but the phone, contacts and iCal, and messaging. Scroll with a circular finger motion like an iPod on the bottom and your contact scroll, etc.
Think this is a 'closed' system? It is for now, but it will open to ALL widgets, new 3rd prty apps, iPod games, other games, etc.
Seriously . . . . people are being far too literal with this product.
This is an AMAZING leap in functional possibilities.
Other companies (MS included) HAVE to be looking at this and saying "Why can't our team figure out how to do 10% of that?)
By the way, remember "Origami" and how PC folks were drooling over the potential? This is 100x cooler than that, and will soon be real.
Also, I have almost zero interest in the Apple TV because it does not record TV, but I will also bet that this is the toe in the water for a TON of future functionality that will integrate with everything else out of Cupertino.