Apple is long rumored to be working on a tablet-like device that’s bigger than iPod Touch, but smaller than its MacBook. Most likely, Apple has observed the success Amazon had with its Kindle device that it decided to jump in. There is clearly a market for these mid-size PCs as some projected 20 million devices will be shipped this year, doubling last year’s output.

Let’s say if Apple is indeed working on such device, its dream features would be

Thin and Light - It must be comparable to the Kindle in terms of its weight and size.
Built-in wireless 3G - This was a critical feature in the Kindle which allows its users to download new books from anywhere. Better yet, the new Apple tablet should also have WiFi capabilities when such connection is available.
Clear Display - The display quality must match other Apple devices. After all, the Apple tablet should be used for viewing pictures, browsing the internet, and watching movies. Furthermore, the device should have Kindle-like fonts that functions as an e-book reader.
Innovative Keyboard - Please, get rid of the virtual keyboard used in iPhones. I never liked them, and hopefully Apple will come out with something new.
Cool Factor - Just like all Apple devices, it must appear cool to be carrying one.
Price - The Kindle sells for $359. I can see the prices goes somewhere between the Kindle and the cheapest MacBook. Anything over $1000 is too expensive.

Most likely such a device won’t be unveiled until 2010. But, maybe a prototype will be presented upon Steve Job’s return.