I thought everyone was saying the iPad is remarkable cause Apple wasn't aiming for an upmarket play?

I think Apple sees the iPad as their netbook. It fills a similar role for the user - cafe, bed, train, casual use - and note how they don't have a notebook with a screen smaller than 11". Compared to a netbook, the iPad is upmarket in style, branding and price.

As far as touchscreen tablets though, as pioneers of the market they didn't have anyone else to position themselves against, besides Archos.

I think of the Macbook air as the competitor to most netbooks only in form factor/physical keyboard functionality but definitely not in price. Most users are using the iPads casually but the adoption in corporate IT environments and in other "professional" settings is compelling (FAA just approved the use of iPads for pilots to replace paper charts/logs) and many hospitals are using iPads.

You could view the MacBook Pro in about the same way - it is competition to notebooks in every way except for price. They cost twice as much as non-Apple notebooks with comparable specs.

I think the second part of your comment would apply to netbooks, too. It's just that nobody takes note of them in the same way because they don't seem as novel as iPads.

There's another thread on here comparing the MBP to the HP Envy and I make the argument that you can't factor out the intangibles when comparing specs between MBPs and PC laptop - OS is highly personal, design/status symbol is of value.

Edit: Whoops. My sarcasm detector is broken.

Coffee++

your irony detector must be broken.

I think you mean sarcasm detector

Sarcasm and irony overlap. This was both.

My pedantry detector is working spot on, however.

This is what happens when there's not enough quality coffee in my cup prior to hitting HN in the morning.