HP's Touchpad demise showed people want sub-$200, good quality tablets. Price it right and people will buy.
My main problem with this is..... I'm tired of "the cloud". I want MY data on MY hard drives, in MY home. Remember, wifi, cellular, and even wired connections aren't 100%, last thing I want is critical data in a place I can't access it and in a place more susceptible to hacker theft.
Cloud is very good for many things. Fron easy synchro among devices to backup, etc. And people are lazy, if it works, they do not care. They store their money in banks with exterely low reserve rates :-)