I like the form factor -- I think you're on target in that respect.  I've been watching what Sony put out a year or so ago in a slightly larger form factor as a home entertainment/Web Browsing type unit.  As I look at the units in the video, I think this could be the type of thing to have lying around the house for browsing from the couch or controlling your home entertainment equipment.  I'm also thinking healthcare as well -- IMO, the typical tablet format in general is just too big.

As usual, battery life will be a big concern -- need a nice looking docking station for the quick recharge.

So, let's see what the manufacturers can come up with...  Hopefully we'll see some interesting takes on this concept at CeBIT...

cheers...