but you are not the target market...
Thank you for giving a perfect example of someone not understanding the difference between the hobbyist and consumer markets
"Real Applications" ... okay then, care to tell us exactly why Joe Bloggs needs the full fat version of Photoshop. I know its an El Reg badge of honour not to touch Facebook, but go and have a look at the pictures your non-IT friends upload on there. Compare how many haven't even had a simple red-removal and cropping applied to them to those that have. I'd be very surprised if the ratio was less than 1000-1, despite the fact that even the simple picture transfer utilities bundled with camera equipped phones usually include this functionality.
Those transfer apps are of course much nearer in size and functionality to those in App Store than they are to Photoshop too aren't they?.
Now given in market terms you are outnumbered around 1000 to 1, do you now understand why these 'limited functionality' tablets may well actually succeed when previous 'full-fat' iterations have failed so miserably, and why everyone but Microsoft seems to be thinking of lightweight apps.
Connectivity is another red herring. Judging from the number of wi-fi networks that my phone picks up if I wander around the fairly average working class estate on which I live, then think its safe to assume that wireless is the way everyone wants to go. My current HP printer/scanner is a wi-fi model and cost me the huge sum of £50. The PS3 has wi-fi as standard, and the XBOX is following suit. They're even starting to build it into TV's and Blu-ray players! Apples time machine is wi-fi hub / back solution if I'm not mistaken.
I don't think we're that far away from a most people adopting a simple mobile pad, wi-fi base station with combined storage solution. I would imagine that how most of El Regs readers already have this as their set up but with a laptop, router and NAS. Joe public wants something similar, but far simpler in implementation, and that looks to be on the way.
The majority non techies use computers to access the web and to hold their photo collections with maybe a little video. At a stretch some may do the family accounts, but then even Microsoft have canned Money. Word processing? What for? The occasional CV? That could be done in a simple template app, why shell out £100+ on office. E-Mail has replaced letters even for complaints in most cases.
The idea that everyone needs a huge powerful PC in the home is mainly superfluous - you may find it hard to believe but most people don't spend their spare time knocking up websites in Dreamweaver. When travelling to and from work I see the current college generation ( especially the female of the species ) spending almost all of their journey interacting most with a computer that is usually very small, not particularly powerful and lacking a proper full keyboard. Interestingly these computers are far more powerful than high end desktops were when I started working over 20 years ago. They even occasionally make telephone calls on them.