Yeah I think this doesn't at all mean that they're killing the HP slate.
Just means they'll make it with the WebOS since they acquired Palm.
That could work better. I'm skeptical that a Windows 7 tablet could ever come close to matching the "intuitiveness" of the iPad.
Tablets need their own OS--not a stripped down version of Windows 7 or the Mac OS.
But at the same time, they need more than a smartphone or PDA OS, so here's to hoping that they soup it up into a nice tablet OS designed around touch interface.