He really is just describing a Nokia N810 tablet. When a reader suggested that, Arrington replied: "yes, although we want to build it a lot cheaper and have a much bigger screen." So, he expects to replicate the N810, but with a bigger screen and better price? How is he going to beat Nokia and still make a profit?
nothing to do with profit - they will retail at cost. it will be cheaper than the Nokia because of what the device doesn't have in it (eg. bluetooth, GPS, being browser only etc.)
now you see it.. ah...