Gizmodo has revealed what can only be described as a really impressive "late prototype" tablet from Microsoft that is two sided, like a book. (A laptop opens and closes like a book, but the orientation here is two 7 inch "sheets of paper" side by side.) The post includes a promotional flash video demo that shows the range of capabilities of the device, including Internet access (apparently also a camera). 

It's extremely appealing; I got that "I want one" feeling when I saw it.

There are now so many tablet and eReader devices coming, it's clear that the market is "real." The Internet on one of these larger screen devices is going to be more like the Intenet on a netbook than on a smartphone. Beyond this, the questions in my mind are:

• What are the right price points: for eReaders it's about $200 or less; for higher functioning tablets it's not yet clear
• Who provides the connectivity (a must) and what's the model there (Amazon provides it for "free" with the Kindle.)
• How does this all shake out eventually in terms of phone vs netbooks vs. tablet/readers?  (Good tablets could kill low-end netbooks unless they're too expensive.)

In other words, it could be that these tablets are the new smartphones, eventually becoming a preferred mobile Internet access tool for business users and those who can afford them. 

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Related: Best Buy and Verizon Jump Into E-Reader Fray:

On Wednesday, iRex Technologies, a spinoff of Royal Philips Electronics that already makes one of Europe’s best-known e-readers, plans to announce that it is entering the United States market with a $399 touch-screen e-reader.

Owners of the new iRex DR800SG will be able to buy digital books and newspapers wirelessly over the 3G network of Verizon, which is joining AT&T and Sprint in supporting such devices. And by next month, the iRex will be sold at a few hundred Best Buy stores, along with the Sony Reader and similar products.

And a survey of just over 3K consumers in the US reports that 21% are interested in the as-yet-unconfirmed Apple tablet.