It's a neat idea, I could see myself using it on the couch at home, but not beyond that. It's too big for a pocket and I don't want to carry a man-purse or backback around everywhere for this thing, so I'm just considering what I'd need for it to be useful to me and a couple things stand out as missing.
Multitasking. Apple really dropped the ball by not including it in this type of device. Until they have that I won't even consider buying one.
HDMI out. So I can use it to download movies from my couch, which is great, but it would be so much more appealing if I could just connect my iPad to my tv after the download and play it out that way.
Micro-sim. Another new "standard". Being able to share a SIM card (and therefore dataplan) among different devices would be useful, but this ensure you need a separate dataplan for this device. It's size limits its use outside the house, imo, this even more so.
I could somewhat see it being fun as a gaming system, but that totally depends innovative uses of the touchscreen. The small little tap type iPhone games that exist already aren't going to be more fun because they're on a bigger screen. And I have a hard time imagining existing games (like NFS shown in the demo) being any more fun just because I steer by touching the screen. In fact, I imagine that as more frustrating than playing with a controller/keyboard. However, if they can revolutionize games the way the Wii did when it first game out, it has big potential as a gaming platform for casual gamers.
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