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If Apple does reinvent the tablet, it will not have many things that those of us in the IT world would want. We want raw computing power always at our fingertips, and right now thats not what Apple wants to give the world. They are fond of giving us what they think we need instead of what we ask for. Of course they always do a great job, and I'll probably buy one, but here's my guess:
Apple doesn't need to just make a bigger iPhone--it would be too expensive, too clunky. It would be hard to separate the features of one from the other. Instead, they'll make a large touch-screen _interface_ for the iPhone which will be usable when your iPhone is in range of its wireless transmitter (bluetooth? wifi?). When your iPhone is gone it will have very limited functionality, but when it is in-range it'll use the processing of your (3rd/4th-gen iPhone) to be a full-fledged touch-screen computer (with 3G internet access). Flip-out keyboard, built in stand, touch-screen. Saw something like this for a Windows Mobile phone recently, but I can't remember what it was called.
All of this is speculation, of course.
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