I still think most would want converged phone functionality, it drastically reduces its value. I don't want to carry an iPhone and an iPad around with me. So are they saying actually, don't carry it around with me that much, use it as a lifestyle product? Reduced value.
But, it's still a kick in the dick thinking why they chose to omit pairing a bluetooth ear piece and use it as a phone/speakerphone. Apart from the one obvious version two revenue stream. I might get one, but it may also be on eBay quickly.
Typical Apple: they like to clearly segment their products, even if it means castrating one of them.
It looks like a bigger, uglier iPhone that doesn't do calls or fit in your pocket. Not impressed, to be honest.
Having said that. Can this product replace my laptop? I tried with a netbook, but running a full blown OS, horrible physically cramped keyboard and poor battery life wasn't so good. But a device designed for portability with what appears to be a well laid out soft keyboard, and not a full blown OS so the experience is actually good and long lasting - all be it not in multi tasking sense. Could I get on with it? Perhaps.
I had an early netbook, a 9" Acer Aspire One, and it had a cramped keyboard and a shit battery, but I bought the new Asus Eeepc 1005PE, and it's in an entirely different class. It has a 10" screen, so it's a shade larger, but that makes a world of difference with the keyboard. It's still cramped by the arrows, like any notebook, but you can quite easily touch-type on it, or at least I can, whereas I couldn't with the 9" Acer. Perhaps you have fingers like sausages, though.
The battery life is fantastic under Windows 7: about 9 hours. Unfortunately, you only get 4-5 hours under Ubuntu, which is what I run on it. The Netbook Remix version works pretty damn well, and it recognised all the hardware right away.