Given Apple's track record I'm sure this will be a wonderful device but I think pricing is going to be a big problem for them. I would expect an iPhone 2G style price drop by summer if the price tag is over $800 as rumored.
The price issue, I think, is key. No one has mentioned, as far as I know, that since the device is designed to be always-connected, it could be bundled with a mobile contract (albeit a data-only plan), just like an iPhone, and thus heavily subsidized by the carrier. While most of us know that a two year contract is a really expensive way to get $300 knocked of the price of a phone, it does allow for really amazing devices to have really amazing looking prices, like $200 for the iPhone or $180 for the Nexus One. I suspect the tablet could see a similar subsidized price (and similar lock-in to a single carrier that made a deal with Apple, hoping for a knock out hit like the iPhone has been for AT&T; they'll be disappointed, but the deal probably could have been made).
If the price is not high enough, coping with initial demand will be a real problem. If the price is high enough, they will cope with initial demand, then they can reduce the price "iPhone 2G style" later. So they have no reason to start with a low price; they would be losing profits and adding a supply problem.
