Absolutely true. The "Me-Too" market is where low-priced clones live, and Apple has no business in that market. Their schtick is to -create- new products, and keep moving ahead of the pack. Of course, that's also what gives Apple the reputation for elitism, higher prices, and so forth. They're leading, and the leading edge is not for everyone, and costs more to ride.
As to what the "killer app" for an Apple tablet would be... well, that's what Jobs pays his "idea people" to come up with. I'm not that smart ;-)
That's why Jonathan Ive's people have a starting salary of over $200K a year.