Maybe it's the iReader? I'm afraid the PDA is pretty much dead and any of its features can be easily ported to the iPhone in a snap.
A new business segment, eBooks via iTunes would make it more plausible. As you all know, physical books is the last media distribution yet to be digitized.
However it wouldn't hurt to pack in a PowerPoint/Keynote app and video out capabilities. Dang, maybe it's just the iTablet and AppleInsider has the whole project's direction wrong.
Agreed on the PDA being dead. I had a Handspring about five years ago that kept contacts, a calendar and notes. Every smart phone on the market today does that and handles email.
Calling a new Apple device a PDA is like calling your Subzero an icebox -- technically true but, you know, sort of lame.