You're making a pretty big mistake by looking at this as an iPad competitor. I've seen the device here at Cisco Live, and it's pretty slick. The device docks into a desk phone-type system, so it basically serves as a desktop teleconferencing unit that can be decoupled from the base station and taken with you.
This device is only going to appeal to those organizations that already have an existing Cisco Unified Communications system in-place and already make heavy use of video communications, and want to be able to bring mobile individuals into Telepresense sessions and provide a cleaner solution for those who need to do desktop video teleconferencing. You can bet that Cisco will eventually release iPhone and iPad (once the iPad gets cameras or a camera addon) apps, along with apps for other cell phone OSes, that will provide tie-ins to the Telepresense systems (just like they already have apps for tie-ins to their VoIP products), but this solution fits a very particular niche in the voice and video ecosystem that no existing product on the market quite fills: a tightly integrated, function-specific mobile video telecommunications device designed from the ground up to work with Cisco's product line.