I don’t think they want to out iPad the iPad, I think they want to change the meme just like Apple did when they released the iPhone.
Apple is promoting the phone to replace the PC by basically putting the OS in a really big phone.
I think MS is trying to expand the traditional PC by putting it in really small containers.
Neither are doing this for our benefit. They are both trying to expand their market share. Personally, I want the most powerful phone I can get that is not hampered by trying to be a PC and I want a PC that is not hampered by trying to be a tablet or phone.
I want the smart phone I can use while sitting in the passenger seat of a moving car, the one I can quickly look up a fact on while sitting in a friend's house, the one I can check prices on while standing in a store aisle, etc.
In other words, I want the one that is easiest for a real human to use in a less than ideal environment, not necessarily the one that is most "powerful".
Some people will consider this a phone with "training wheels". Let them have their very powerful phones. I'll settle for my iPhone, training wheels and all.