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So, I don't think the Mac tablet is necessarily a book reader. First, it is a multi-function device. I think that the meaning of Jobs famous statement about their being no market for book readers is that the market for dedicated ebook readers (in his opinion) is too small.
Look at the success of the Apple app store, and the books on the Iphone/Itouch. I think they see this as a multi-use device. One of the uses is as a book reader, but this isn't necessarily the use that drives the 10 inch screen.
The biggest book related app for this would be for reading and annotating pdf's and doc's. Teachers could grade papers and send them back to students where they could view them on their screens. Researchers could read and mark up pdf's. I personally don't count this as a book reading app. For pure book reading 5" is great for me.
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