Is this the new Apple "Netbook?" It makes lot of sense for Apple to be working on a "iPod touch HD", a touchscreen, portable Internet device that's bigger than the iPhone. The netbook market, a small and relatively inexpensive PCs, is exploding and combine it with successful Apple's multi-touch gadget platform, this would be a perfect marriage.
While the rumor refers to Apple's gadget as a "netbook," I dont think Apple will be producing something me-too. Those maniature device has little aesthetic design and definitely doesnt fit well with the Apple's cool and sexy positioning. I think Apple will take advantage of its expertise in multi-touch screens and virtual keyboards to make a device that's about four times the size of an iPod touch, selling for around $600 to $700.