I expect 'The Emporer's New Clothes' will be expurgated from any editions of Hans Christian Andersen's fairytales that are sold through iTunes. Equally, I'm sure that there will be a market for big, unwieldy iPhones that won't display iPhone apps properly and that you can't make phone calls on. Admittedly the iPhone may be useful for people learning to squint given that it's ereader function hasn't got anything approaching the Kindle's digital ink.
Still, the world of commerce is no doubt grateful for the market segment allegedly identified by PT Barnum as being born every minute.
A real pity as I hoped that this would be a mould-breaking bit of kit but it's a huge step backwards, for shame.