[markem]

It will be interesting where this really shakes out at in terms of usability. The touch screen keyboard is a solid idea and I think that Apple has had enough experience with these to really make them solid. But in the end, it will be the applications that make or break it. If it really is the iPhone OS, then the current iPhone apps should work, at least in some fashion, unless idiosyncrasies of the hardware are exposed to the app.

It is too big to put in your pocket or carry just about anywhere, which means that the iPhone still has a solid edge for many applications. As a DVD player it is overpriced, but the e-book feature combined with video capability and internet capability may give it an edge. Amazon has lost a bundle on the Kindle - it will be interesting to see how much of its stock price Apple is betting on being a better Kindle.

As a netbook killer, well, we'll see. As I said, it is all about the apps.