"For me, the NIT functions as a small laptop; versitalility is the key."

Exactly. Here's how I look at it -- What would I miss if I swapped my N800 out for an iPod touch?

* Being able to VNC into my home computer
* Being able to cache-read RSS feeds on my subway ride
* Being able to sketch a quick drawing with the stylus
* Being able to casually read a PDF paper on the sofa
* Being able to Bluetooth-pair with my phone when open wi-fi isn't available (admittedly, the iPhone would solve a lot of that)

But seriously, you can't agree that these are mass-market features.

What the iPod touch does is cement the Internet Tablet to the Linux-fan and computer-hobbyist markets only. The Apple product design mantra of "do a few things clearly and extremely well -- even if limited" is a winner for the general public, and this means it will have the audience that companies and functionality-hackers will want to target.

E-ville makes exactly the right analogy: the Sony PSP is as closed as game hardware could be, yet it enjoys a tremendous hacker community putting all sorts of emulators and titles on it. Apple has never been as tough on hackers as Sony has been (see existing Apple TV and Linux-on-iPod hacks), of course, that could change -- but is unlikely and sets the tone as to what can happen on the platform. That, and Apple may add some of these "missing" abilities officially in later firmware updates which as we've seen happen pretty damn smoothly, and frequently (unlike IT updates).