I would love this product, if instead of iPhone OS, they had used Snow Leopard, so then it's an actually functioning computer, instead of just an oversized iTouch with 3G.
But if I were to buy one based on my needs - I'd want the longest possible battery life for internet and watching video. I think they've nailed that compromise.
Just think of the hardware required for SL. Then compute the power consumption. The iPhone OS, and the hardware described is going to make this usuable for people who are away from home and desktop computers. Do not think it will replace laptops for those who work on laptops.
Those of us who use a laptop for casual browsing and email, the iPad will be good enough.
No it wouldn't. iPhone OS is based on Mac OS X, which in itself is designed to be cross-platform. It's quite possible Snow Leopard is running on ARM, SPARC, Alpha deep inside Apple.