It doesn't matter to me whether they needed the equivalent of a netbook to drive the thing; it matters whether it delivers $250 worth of value. I'm not sure. At that price point, there are too many substitutes to consider.

I'll say this: if the iPhone came in this form factor, there'd be a $3.99 app that would log the contents of your pantry, submit Peapod/Urbangrocer orders, and aggregate/display all viable recipes from Cooks Illustrated. Tapulous would make $2,000,000 off it in their first year. And I'd buy a Picwing to get it.

Not there yet, unless I'm missing something.