Lower Cost Structure - In our industry (diabetes) you give away hardware to get ongoing disposable revenue. This hardware is expensive to produce and develop. Plus you spend a lot of effort on areas that don't add much value e.g. reinventing the wheel re: display drivers. This completely changes the economics of the industry.
Higher Product Quality - By taking advantage of the core Tablet attributes like color touch screen display and processor you can do things feature wise that would be prohibitive with custom hardware. The amount of "ooohs" we get showing off our iPhone UI vs the current LCD one is staggering.
New Revenue Opportunities - Again our business has thrived on a single revenue stream, the disposable test strips. With connections to the web all manner of "virtual good", subscription services, and other digital business models get opened up.
Overall it is a huge win for both user and entrepreneur and is going to fundamentally change a bunch of hardware businesses.
If you want to see our product, here is a nice review (http://www.fastcodesign.com/1662351/blood-glucose-monitor-fo...)