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> I still don't know what design problem it solved.

It supported a CRT so you could have your laptop under your display without needing to spend desktop space for a laptop off to the side.

I’d love to out my laptop into a slit and take it out later ? This “bag” though seems like an insult considered I still liked the smaller iPhones.

Except that Apple didn’t make this. It’s made by the Issey Miyake brand.

Apple is still embracing it: they posted a press release about it, and are selling it on their own site, though.