Today I wanted to check out the iPod Touch at the Apple Store. Unfortunately, it wasn't there to play with. The reason I headed over there is because when I was at the Sony store, something clicked when I was looking at Sony's clunky UMPC. I thought, "Damn, putting Vista on a machine this small is an enormous waste of time. It would make more sense to put a custom OS on there that pretty much does everything you want with less overhead."
Enter the iPod Touch.
The Touch is essentially a portable computer with a custom OS. It's very limited, but it still does most of what people need -- internet, music, videos. It doesn't do games, but Apple has already starting doing games for the regular iPod with EA, so I guess that's just a matter of time. Eventually Apple can start pushing through signed applications of all kinds. You can have an office apps, Quicken, whatever. This is what 99% of the world does with their home computer anyway.
I'm very curious if the iPod Touch is actually the more meaningful device that Apple has released. It's the portable PC, and isn't tied to crap AT&T EDGE service. Maybe someday Apple will build upon it, give it a microphone, give it bluetooth, and you'll be able to use it as a VOIP device as well.