I don't know that I agree with the RFS but there's no doubt the iPad is a platform practically built for YC. Apple's restrictive approval process creates a barrier to entry for large scale startups since no one is going to spend millions of dollars on a product that might be arbitrarily denied entry to the market. That barrier makes a huge opening for YC size startups to target the market and make some significant gains.

I still think the iPad has some limitations that will prevent it from being a Windows killer (multi-tasking, restricting vital areas of innovation like input, etc...). But if you're looking to apply for YC funding you really have nothing to lose.