Nice soundbite, but that's nonsense.

They're not trying to compete with Apple. It's just a demo they had lying around (probably from back when everyone was going crazy about chrome os), which they released because everyone's going crazy over tablets.

It's timely, and it's worth watching. http://www.youtube.com/watch?v=nq3EeZz-W3A has some similar interactions.

Regardless of Google's intentions, it's going to be perceived as part of their feud with Apple. Anyone can make a demo, but Google has yet to demonstrate that they can execute well on hardware.

i care now because it's more than an upscaled ipod.