It's not pocketable.
While the iPhone is often called "basically a computer", as far as computers go, it's a pretty crappy one. Can't play most modern video games. Can't run office suite software. Can't play Flash or Activex controls. Can't can't can't... So why do people (like me) love it? One reason, and only one reason. It's pocketable.
When not in use, you can stick an iPhone in your pocket or on a belt clip and it is, for all intents and purposes, gone. You have both hands free to do something else. You never have to consciously bring it with you -it's always there. Less danger of leaving it in a cab. Aside from that, it's crappier in every single respect to laptop with a 3G card. It's not even cheaper than a laptop.
While the Apple tablet will likely be smaller than most laptops, it won't be pocketable, which makes its size advantage almost irrelevant. If I have to carry it in a backpack or briefcase, it's just as unpocketable as any other laptop.
So the question becomes, how will the Apple tablet stack up against other netbooks and laptops (especially considering that you can get a pretty kickass laptop for $500 nowadays and carriers are giving away netbooks for free with service contracts). Because of the Apple tablet's expected small size, I'm guessing it will have limited speed, limited memory, limited battery life, and limited connectivity options compared with most laptops (similar to the sacrifices Apple had to make in order to get the Macbook Air to fit in a velum envelope).
If it comes in at the expected $1000 price point, it had better be have some mind-bogglingly awesome other features...
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