Thing is, would/could the iPad 2 design ever get to that sub-$300 mark (and "sure, in another 2-3 years" doesn't count).
One more thing, regarding portability. I don't use that as a stand-in for "fits in a pocket". I simply meant "smaller and lighter...in the way a Kindle is, compared to an iPad."
To me, there is no right or wrong here. And no drastic trade-off/downside in usability.
Simply an option for those who want the iOS experience in a smaller, lighter package (but not iPod touch small/light).
With iCloud and the PC-free aspect of iOS 5 (and beyond), we've hit that point where, for some people, this is all they want or need in a computing/consumption/creating/communication device.
If Apple has evidence that there is a place for this, they'll do it.
We have no idea what kind of info Apple is sitting on.
And although I'm at 50/50 on this, in terms of personal stake or outcome/prediction, I have to say that I believe I'd put money on it happening vs. not.
iOS is the bread and butter, and Apple will do things to bring more people into it all if they believe they're sitting on an untapped well.