Well, the rumor made it to
The Financial Times.
It may be geared more to gaming, browsing and video, but depending on the screen, it may also be a killer reading device (hopefully with full PDF support, including Search and annotations.) If so, it would be a clean sweep on campuses.
And, speaking of book things, here is FT's scoop:
"Apple is working with the four largest record labels to stimulate digital sales of albums by bundling a new interactive booklet, sleeve notes and other interactive features with music downloads, in a move it hopes will change buying trends on its online iTunes store."