Now that I've had time to contemplate it, the new Asus is a genius move as apps are small so the storage requirements are minimal and most people aren't developers or don't use PhotoShop so the RAM requirements are minimal too which is why they can use tablets as their primary computing devices already.
Email is stored on the email service provider site, gMail, yahoo mail, etc.
Photos are all stored on photo sharing sites like Flickr, Twitpic, Facebook, etc.
Videos are uploaded to YouTube to share.
Basically, since we live in a SHARING environment with multiple PCs of sorts (phone, tablet, desktop) the local storage requirements aren't important to the masses as much as sharing and synching which requires moving it public, to some cloud space typically.
For those reasons, this big touch screen device could very well succeed because it's more than adequate to run Android games and what little productivity the average user needs.
I think it's a model of big screen computing for the future, get used to it.
FYI, don't tell me why it will fail because of how YOU use computers because your friends, family and kids don't use them the same way. My wife who is a power user at work, isn't at home and a tablet is more than enough for all her needs. It's also all my daughter, son-in-law, grandkids and inlaws need for what they do as well.
Doesn't work for me as the only computer in the house, but I'm not the customer, nor are most people posting in this thread so we can't determine it's fate based on our requirements but I think it's spot on based on everyone else I know.
It's what I've been saying for years that the rest of the people just want an appliance and here it is!
The best part is it's all backed up by the various sharing services so unlike the desktop model, if the machine drops dead it's all still there in the various accounts.