A 7" screen is too big to be an iPod, so it would have to be focused around films and apps. Yet a 7" device is pretty big to be a device with an accelerometer and no D-pad and be used as a game controller, but not very big to watch films on. And it would be limited as a general netbook competitor by having no keyboard and running the limited iphone-ipod-OS.
Can they make a touchscreen so much bigger and still as good?
Would it be netbook style Intel Atom based and expensive with short battery life and much thicker than the current ipod touch, or the same very low powered phone/pda processor currently used? Could they make it structurally strong if it is as thin as the iPod touch yet much bigger?
I can't see it filling any particular niche given that it would be too big to be pocketable, too limited to be a macbook air competitor and likely not cheap enough to stand far away from the iPhone/iPod touch/macbook.
Who would want one and what would they want to do with it?