Thanks for very thought provoking post. I am an Apple fanboy, but even we can appreciate spot on criticism. I'm glad you've posted this, and can only hope the coders at Cupertino will take note as they continue to revise and improve Pages (and interestingly, I usually use Pages for layout, generating text in another app — usually Scrivener — first; never realized it had editing muscle, and I look forward to exploring those capabilities).

And that's one gripe I'll make: calling the iPad a "toy" is an insult to the hardware, but what you're griping about is software — which, again, can (and will) be improved over time.

Also, on the hardware end, I imagine screen size relates more to that fine balance between processing power, weight, and ease of handling. As components shrink, we'll see slightly larger screens with better wide-screen ratios.

And better editing capabilities... (speaking of which, you misspelled "two" in the last paragraph — or was it your software? :)