Why Consumers Won't Buy Tablets
news.cnet.com
news.cnet.com
I definitely agree that an Apple tablet at ~700 USD would be massively too expensive - but then I think that most existing Apple products are fairly outrageously overpriced - and well off Americans don't seem to mind too much.
I actually think that with a good enough tablet, having external accessories/peripherals like keyboards, mice, storage etc.. would be a good thing, not a bad thing. When you're at home/work, you could use the propped-up tablet as the 'screen', with the rest of the 'computer' spread out on the desk, plugged in via USB. When you want to go out, just unplug the tablet and go. Lots of people use laptops in exactly this way now, as their primary 'desktop' & laptop computers - they just plug more stuff in when it's in 'desktop' mode. Using one like this would probably require a more general purpose OS, rather than something fairly phone specific like the iPhoneOS though.
I think it's fair to assume that if Apple is going to release a piece of kit, they'll make sure it works. It might be as expensive as all get out, short some hardware and suffer arbitrary limitations. But have they even made a major usability mis-step in the last decade?