Nokia has introduced a non-cell phone that uses Wi-Fi for connectivity: It's sort of a PDA, it's sort of a tablet, it's sort of a new category. It has a touch-sensitive screen. Its initial version doesn't support voice, oddly enough, but it's designed to be a kind of laptop replacement--with limited software.
So they've introduced an Internet browser for $350 that's not a general-purpose machine. It probably also requires new software development for companies that want to create add-on software--if that's even an option. Appliances, unless they meet an incredibly important form-factor niche, don't succeed. Contradict me in the comments below.
Update: Read the comments--this device is a general-purpose computer being marketed in a very limited way. Oh, and I'm apparently an idiot.