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[1] The hardware wasn't ready though: there were units akin to more recent tables and hybrids (360⁰ hinged laptops or those with detachable keyboards) but at the time it wasn't possible to make them light enough with enough battery life, nor powerful enough² without noisy active cooling, large touch screens that worked well enough without a stylus were too expensive so the pen had to be a thing, etc.
[2] At least to support desktop/laptop workloads. People hadn't got used to the middle-ground of powerful-enough-for-what-you-might-actually-find-a-tablet-convenient-for (PDA like tasks, web browsing, video playback, light games, maybe light office work) via smartphones and nobody wanted to try sell a 9+ inch PDA.
Gates said about 30 years ago that we'd all be having internet connected computers in our pocket in the future, and they were right they just turned out to be powered by Apple and Google and not by Windows. Same with tablet computers. Their own implementation failed but the tablet computer exists today and is pretty successful, except is not Win PC based but based on mobile platforms.
Same with AI, it will definitely happen in the near or distant future that consumers will be tied to AI assistants for work and life, same with full autonomous cars, but nobody knows yet who will be the one to win this battle, that's why tech giants are lighting piles of money on fire to make sure they'll be the ones on top of the rubble pile at the end of the AI war. This is the next gold rush.
We generally don't use them by _writing_ on them, though. Like, their predictive power more or less comes down to "computers will get smaller", here; if anything things like the iPad owe more to the 'Padd' things from Star Trek TNG than they do to Windows for Pen Computing.
On this basis we may surmise that Star Trek is better at predicting the future of computing than Microsoft, and, thus, rather than ever-present AI assistants, we will have evil AIs which can be made to explode with logic paradoxes.
I've never actually _seen_ anyone use an iPad by writing on it; perhaps it's something that people only do in the privacy of their own homes.
I go to a cafe in the university district where a lot of young students hang out and see many hand writing and drawing on their iPads.
Writing and drawing on tablets is actually one of their major selling points in replacing computers and paper notebooks, versus just buying laptops with flippable touch screens which were the tablets of the past.