Is Apple Brewing a Netbook?

Micheal Scalisi from PC World just posted a little article slapping around Apple for the rumored design of a 10-inch tablet / netbook.  The supposed design includes a 10-inch multi-touch screen, 3G wireless broadband access and the iPhone OS.  Basically, it would be a really big iPod Touch.

This is news to me, though I don't really keep up as closely on what Apple is up to as I do Dell, HP, IBM, and the other PC makers... not to mention Microsoft.  I don't hate Apple... actually on the contrary, I, as so many others of my generation, grew up on Apple IIe's and Oregon Trail.  The thing is, I don't use Apple products in my daily life (I'm a Zune owner, even), so I don't really have a lot of reason to watch Apple.

Scalisi is in somewhat the same boat as I, not an Apple-hater.  He does, however, hate on the design rumors like it beat up his little brother.  In his opinion, nothing good can come of the proposed tablet-PC / giant iPhone, and it should be avoided like the plague.  He feels it's going to be a niche product.  Who knows?

Here's the link to his article if you're interested.  Also, comment on what you think!