It is the next step in the evolution of the multitouch OS. Microsoft proved slapping a desktop OS into a tablet isn't the answer. If you're Apple you have 2 options. You know the device is going to be multitouch. 1) Use the lightweight multitouch OS pioneered on the iPhone with access to over 140,000 applications designed to be used with multitouch. Not only is the OS lightweight, but it's simple and easy to learn, and application installation and management is mind numbingly simple. 2) Shoehorn multitouch into your desktop OS. Now your first party apps will work well. 3rd party apps designed for a mouse and keyboard interface? Not so much. The learning curve here goes up dramatically. Mom and Pop know nothing about mounting a DMG image to install software. You can add in an 'iphone emulation' layer to run app store apps, but that just adds to the bloat of this now 3rd fragmented FrankenOS, which is not designed to operate on a mobile low power chip with battery life taken into consideration. So it's a no brainer. You use iPhone OS. Which should now be called Multitouch OS X or something along those lines. Sure, at first it looks like a 'big iPod Touch', well, that's because developers haven't had time expand their ideas to this more powerful hardware with expansive screen real estate. No camera is a bit of a letdown, but we'll see it on this class of device in due time, one way or another. No Multitasking? A valid concern but something I think that will be shown with iPhone OS 4. No Flash? A hulu and netflix app would be fantastic, we can dream. Flash is either going to hang on or be put out to pasture, it's yet to be seen. Aside from the camera, the complaints against this device are simply a software update away.