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Great points David, and I'm hoping and thinking the same thing about Palm's "third business" - a small tablet/hybrid clamshell (with a thumbboard as well as tablet mode for handwriting/digital ink) computer that is pocketable, and it becomes your primary computing device. Bill and Co. don't understand the 80/20 rule, so their user experience will always suffer. Apple and Palm do understand the importance of usability, the user experience, and providing end-users with "solutions" that "just work", so I expect the same will hold true when it comes to mini-tablets.
The point about battery life is also right on, and it looks like Lenovo has addressed that one well with their new tablet.
Bob's point about Vista's requirements could spell trouble for Bill's vision unless some serious work is done to trim down the horsepower (CPU & video) requirements, which will have adirect effect on battery life as well as the size and weight of tablets. Smaller, lighter, and less power hungry = better.
As far as the current form factor of convertible tablets, they'll probably remain niche products for vertical markets and the healthcare industry unless a "killer app" comes along that gives the Tablet PC more mass market appeal.
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