Well, I thought it blows at first, bigger iPod Touch, and it really is, to get a bigger iPhone you have to pay 130$ extra for the 3G version, don't forget that.
then i read this article on gizmodo and it slowly dawned on me that this could be some kind of replacement computer for people who simply have problems learning how to use a mouse, the whole doubleclicking-windows-multitasking-driver-settings-issues-world of computers, netbooks, etc.
Like my mom, she wants to get on the internet but doesn't really have the time and patience to really learn how to use a computer, giving her an easy-to-use iPad that she could more or less just use after 10 or 20 mins of explanation could be a great thing, except for one big blow...
What's the use of having an internet device that large without flash? Well, there are apps for facebook etc so you won't have to use the browser with all it's plugin deficiencies to access them but there are many sites for which there is no app that use flash and other plugins that my iPhone's Safari simply cannot display correctly, some of them becoming outright useless, and that, I think, is why even my mom would be wasting her money getting one of these...
edit: Might also add that the pictures in the OP are wrong, here is a video of what it really looks like
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