I still can't believe the "$499 base product sold out" news. Unless they had, like, 8 units total, and Ballmer & Gates were shipping them to their in-laws or something. ("Give to a friend - make an enemy! Or give to an in-law, and they've got a new doorstop!")
I honestly can't understand ANY viability for a Tablet Marketplace. I think small, hand-held pocket sized devices have a place. And I think notebooks have a place.
But something in between? WHY?!! "Oh, I only want to carry a 2lb device."
Oh? Add in a 2-lb power brick, add in any external storage devices. Buy a new carrying tote-bag, too. So now, the 2-lb device is about 6 lbs. "Well, that's still better than a 10-lb notebook!" Yes. But "Carrying it" is the ONLY thing it's better at.
I guess those forced marches across tropical jungle trails might indeed give Tablets a worthy marketplace. "Yes, General, our research showed that, in the first 15 miles of the Kokoda, people were discarding their Toshiba notebooks..."
I really wonder what kind of market research these folks pad their expense reports with. "We MUST charge these fees to include all of our research!"