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Several of the iSlate rumours recently have hinted at fancy new multitouch shinies and sophisticated additions to the user interface paradigm. I think this will certainly make it an interesting device from a UI perspective and may give Apple a chance to regain the edge in terms of general computing interfaces, since with Win7 Windows is (finally) in some ways superior to OSX (I have machines that run both).
But it's looking very unlikely that it'll have anything new on the hardware front, and almost certainly will not be running a PixelQi screen (otherwise they wouldn't have spent so much selling their tech at CES). So it'll be running a conventional LCD (or maybe an OLED for the bankers looking to blow their bonuses) and will have usability and battery-life to match.
That makes it a non-starter as an ereader.
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