According to the keynote, its in-between a smartphone and a computer. That was what they were aiming for and I must agree, they have met that mark. I haven't completed the keynote yet, but it does look very interesting. The e-reader looks nice, but after seeing it, I fear that it will cause eye strain during long periods of reading. If I ever did get one of these, I would get rid of my iPhone and buy some junk phone. Granted, I currently have no plans to get one. Now, if one of you wish to give one to me as a gift, I would be honored to accept it and thanks!
According to some rumors, they are finding code within the SDK signifying that it is designed for VOIP conference calls, which would be nice.