Disclaimer:    1) I make my living using Microsoft Server technologies & ASP.net     2) I prefer using a mac desktop, when I can.   I run on a Macbook Pro at work, and a combo of Macbook Air & iMac at home.    3) I own an iPad, several iPhones and an iPod touch in my household, so we're heavily invested in the Apple ecosystem    4) I didn't watch any video of the presentationAll that said, if this tablet runs a full OS when the keyboard is present and does a good job with a tablet-style UI when it's not, it's kind of a big deal and it makes a lot of sense with what's happening on the Windows 8 front.   It's sort of suspect that they'd be able to put enough power into something as thin and light as a tablet would need to be, but I think that's where they're *trying* to go.  Using my iPad to take notes, I don't use the on-screen keyboard very well, so I bought a bluetooth keyboard to take notes, which is awesome.   You mostly forget the real full OS stuff you're missing like windows and multitasking, but the instant you need to select some text or move the cursor and you reach for your mouse there's this moment of confusion where you transfer from this "interacting with a computer" to "interacting with a tablet" mode.    I think Microsoft may be taking aim at both the ultrabooks and the tablet market with this device, I hope they're successful because if when I had a bluetooth keyboard and mouse hooked up, my iPad operated mostly as a macbook air running full OSX, it'd be awesome and, quite frankly, Apple needs a little competition and it's something we all benefit from.
		
		
	 
I can already run a full windows session on my iPad with VMware View.   Word, excel?   Covered.  I want to run that same exact instance from my desktop, droid, kindle fire?   No problem, covered too.   To me, that  model is far superior and is definitely the way of the future.  You really only need a full OS on a machine/tablet for your high end power users.
		
 
		
	 
So can I, but you need a decently strong internet connection (i.e. not from a sailing boat), and you still cannot edit documents (w/o a keyboard and realistically a mouse - ever try highlighting text from your VMware View)?  It's not nearly the same as being able to do anything you need w/o plugging into the cloud and still having difficulty copying/pasting editing.
		
 
		
	 
Network connectivity is definitely a downside, for me it's VERY rare that poses any problems though and things are going to just continue getting better on that front.   Personally not heavy on the editing side of things, and that's something that falls more to the higher end users who I really dont think things like View and tablets are geared towards.     People that have these needs should just get a laptop IMO, I really don't get the constant motivation to turn these devices into something that was already on the market.   These appear to be the concerns MS was listening to.   It'll be interesting to see if this causes them to gain traction in the "it's a toy, I want a mouse and keyboard" market.   Not sure those people are really hyped to get this though.   My prediction is that it'll suck more at being a laptop than an actual laptop, and will suck more at being a tablet than an actual tablet.
		
 
		
	 
That could be the distinction, the iPad I find is very good at consuming things made elsewhere, but not really ideal for creating things.   If you're writing a term paper on your iPad, it's probably going to get pretty frustrating because there's a lot of editing involved in getting to the final product and a lot of that editing is klunky on tablets.   This is by no means a shot at Apple, I think the iPad is amazing and I'd buy it again but there's definitely a void in between the tablet and a full on laptop for things like editing documents and spreadsheets that aren't necessarily processor intensive, but still things a lot of normal people do (school kids, people in business, etc.).  There are power users like me and they definitely shouldn't worry about me running a VM on my iPad or compiling things, but I think if someone can get the tablet form factor combined with a more computer-like experience in editing office documents, I think you have a machine that really could replace a laptop/computer for the majority of users.   Right now, I don't think that can be said of the iPad.   I bought my mom an iPad, she still needs her computer to work on word docs and spreadsheets for work and my sister still needs a computer in the house so she can write her term papers, everything else they do outside of creating office documents can be done amazingly on the iPad.  Give them a way to turn the iPad into a low-powered machine that handles a keyboard/mouse and the office suite, you just saved them each from buying a computer ... you've created value the iPad can't meet right now; if you want to topple Apple, that's how you're going to have to do it but you better hurry before they do it if you want to catch market share (frankly, having this event to detail a strategic move like this before you can ship is a bad idea, you just gave Apple a head start in responding).  People like my mom and sister aren't going to set up a machine they can remote into, because, well, that still requires buying a machine and a level of technical fiddling they don't care to do.  I'm not exactly confident MS can pull it off (because as has been beaten to death, they don't exactly have a corporate culture of innovation), but I'm rooting for them because even if they don't accomplish it, it will provoke a conversation and there's a good chance Apple will respond.