Earlier quoted context omitted.
The Xerox management thought all of those things were just toys and that computers would never be anything but what they were at that moment. Reminds me of a lot of people who look at the iPad and say "meh."
Come on now. Please explain to me what is revolutionary about the iPad. It is 'meh'. It's just a big iPod touch. It's like a netbook or laptop but less useful. There's nothing revolutionary about it at all. It's a slightly slicker version of all the tablet PCs that have failed to capture significant market share for the last 10-20 years. It'd be easy to say "sure but you're a geek, you just don't see how easy to use…
The greatest weaknesses of a PC are its complexity and its UI. A PC is complex enough that a novice user can either completely fuck it up or is terrified to try doing more than a limited number of tasks with it. And that's an inclusive or.
PG, in 2001:
"When you own a desktop computer, you end up learning a lot more than you wanted to know about what's happening inside it. ... My mother has a computer that she uses for email and for keeping accounts. About a year ago she was alarmed to receive a letter from Apple, offering her a discount on a new version of the operating system. There's something wrong when a sixty-five year old woman who wants to use a computer for email and accounts has to think about installing new operating sytems. Ordinary users shouldn't even know the words "operating system," much less "device driver" or "patch."" http://www.paulgraham.com/road.html
Even if you're accessing web apps, people still have to wrangle with the operating system a good deal. People need a limited device that gets out of the way and doesn't need them to administer it. And it turns out that a limited device can also make some security guarantees about running native apps, as well.
The keyboard/mouse UI is pretty nice, but still a weakness in some respects. Keyboards are fast and mice let you do spacial things with a screen. Unfortunately, keyboards in most contexts have somewhat arbitrary effects ("/" means search, "command-z" means undo) so people don't use them outside of entering text, and mice are not especially fast. Both devices are also rather indirect. Multitouching a handheld device is about as fast as a keyboard and probably even more intuitive than a mouse. And the directness is unmatched. It can even reproduce maybe 70% of a keyboard just by pushing a keyboard up onto the screen. This seems obvious in retrospect now that we've had iPhones for years, but once again--the weakness of the iPhone and iPod touch is the small screen size.
And in the laptop context, the keyboard and trackpad physically get in your way. Why have a touchpad which indirectly controls a cursor when you can just touch the screen? The keyboard has more use, but when you take the tradeoff of eliminating it, you can get a lot closer to the screen and carry it around in a usable state far more easily. I've spent a lot of time carrying around open laptops, and it's pretty unwieldy.
I don't think the iPad will be revolutionary until it doesn't require a PC to sync to. It would also help if it was cheaper--cheap enough that you could have one in each room, at least. And I'm not completely convinced myself. But there are enough signs that they're onto something that I'm intrigued.