So far, it sounds as if beyond the hate leveled at Apple as a company, the complaints here come down to
- it's not a tablet, and doesn't do all the things I expect a tablet-sized device to do
- the Kindle is a better e-reader
- it's not expandable, as I would expect portable computer form-factors to be
- no camera
- sucky 3G network provider
- Steve Jobs overhyped it
I think all of those are true, and generally fair criticisms. I think when we put it in the context of Apple as a company though, you've got to look at this product on its own terms, as an attempt at being another new type of appliance rather than an entry into an existing competitive market. Apple never saw itself as a game player - they don't show up at all the computer trade shows to invite side-by-side comparisons of their stuff with PCs. They only reluctantly permit 3rd party retail channels, driving the majority of consumers to their own stores and web channels (resulting in a LOT of overhead for the company, a fact which has brought other companies to their knees). They have pioneered a lot of ideas, not all of them commercial successes, but off the top of my head I can think of (they didn't invent these but are the primary company responsible for their market adoption):
- WIMP interface
- Mouse-driven personal computing
- Appletalk, easy home networking
- common peripheral connectivity options
- Home media computing
- Newton - pdas, handwriting recognition
- All-in-one desktop computers (no separate components)
- User-friendly wi-fi networking
- Designer-colored computers
- The Cube - silent computing
- MP3 player with online music store
- Simple video editing
- Video player with online availability of video content
I'm sure I'm forgetting a few but the point is, whether you liked how Apple implemented these or not, or whether you personally saw value in these or not, that is what Apple is, and that's what they are attempting with this new device. Not an entry into an existing space but trying to carve out another new one. Because it is about the same size and does some of the same things as a tablet PC they will inevitably be compared to it, but I don't think that that's what will determine the fate of this class of devices. The "think different" strategy has often (though not always) worked for them in the past so it's wrong (and lazy) to call it a "piece of fail" (or however you young people so eloquently put things nowadays) because it doesn't do what you can do with other, less costly devices.
The glaring exception to this notion is their ubiquitous "I'm A Mac/I'm A PC" campaign where they are directly trying to carve out home computing market share, but that is in their most-established category.
The challenge is, is there a space for this device? Can they convince people (like them seem to have convinced my daughter, and back2basics) that this will improve their life and is worth the price tag? For a lot of you the answer appears to be (at least for now) "no." Market success, more iller apps, or some other minor tweaks might change that answer. Personally I don't think that I need this yet (and I was a very early adopter for other gadgets - still have my original first gen iPod) and I agree with the sentiment that they will shake out the bugs in future generations, and I can see getting one for my kids in about a year or so.