I don't see any real use for it. Its too big to be portable, and too small to work with it at home where you can set up real PCs. Or Macs. Its just a toy for the fan that already has everything. Quite pointless device in my eyes.
What about for my mom, that isn't very good with PC's, but loves to listen to music, and check her e-mail, and watch youtube?
Seems a perfect fit for a laptop replacement for super light-duty users, or people wanting a ultra-light laptop. I absolutely love my iPhone, but just wish sometimes the screen was a wee bit bigger. But then it would be bulkier, and harder to carry...
However, don't judge it too harshly on it's OS yet IMO. It hasn't had time to mature, which is where apples strength really lies. The iPhone was always hammered for not having any apps or useful features when it launched too, but look at it now. I could VPN into my home network, and VNC into my server, play CoD Nazi Zombies, telnet into the server at work, pay my bills, and even play playstation games.
It's not made for everyone, it's intended to fill a niche market. And it will fill it well.
You're right.
It's an ARM based Netbook with a touch screen instead of a physical keyboard