We're missing something.
What's the intended market for this product? Why would someone choose this over a regular netbook - especially without a keyboard. I personally can't see myself typing up an entire document using the onscreen keyboard. The tactile feedback is kind of essential there.
Perhaps this is going to be a media device? Similar to the AppleTV? Replacing the AppleTV, perhaps? Without a full keyboard, I can pretty much only see this device used for handheld gaming, watching videos, and internet. I can''t see it used for word processing or really any heavy business applications. And that might be its downfall. However, the rumor mill has been unusually quiet in regards to any new deals with ebooks or video content.
Perhaps apple's external keyboards will be available for it? But that seems to go against Apple's M.O. of simplicity.
We're definitely missing something.