This reminds me of the folks that discounted the iPad because it was not good as a smartphone for portability(oversized iPod Touch) and much less powerful than a laptop. Predictions based on personal anectodes in a billion plus device market are a dangerous thing.
I agree that the Surface Pro is trying to create a new market here(spaced between iPad style tablets and the laptops/MB Air/Ultrabooks which is an uphill task, but I do think there are a lot of people who want a no-compromises powerful portable tablet for on-the-go use.
Now Microsoft comes with Surface (Pro and non-Pro), sounds like they are going after niche high-end tablet markets (those who want Office + a keyboard), and higher-end tablet markets (though who want to run Visual Studio). Completely opposite direction that at best will be a successful ultra-book. I'm not seeing mass appeal, but a lot of that will come down to pricing.
> sounds like they are going after niche high-end tablet markets (those who want Office + a keyboard), , and higher-end tablet markets (though who want to run Visual Studio).Completely opposite direction that at best will be a successful ultra-book.
Niche in this market mean at least tens of millions of people. Not to say that the Surface Pro will succeed(pricing is important as you say) but the laptop/ultrabook market is still much bigger than the tablet, both the install base and sales.
Less than $100 is still a pretty hefty tag in this market too; that's half the price of a Nexus 7! I think Microsoft are going to have to learn that this market isn't going to allow them the huge margins they've traditionally enjoyed on PCs.