Well, you have to hand it to them, it is a very cool looking device indeed. Apple's upgrade to their iPod range is significant to say the least. It makes sense to leverage the technology behind the iPhone into a device like iPod Touch.
I think that it is interesting that Brighthand see this as Apple returning to the traditional PDA market. I guess you can argue that they have, but I'm not convinced myself.
The most telling sign will be if Apple finally open up this platform for developers. If they do it could be really interesting. I guess time will tell.
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