I think the single-purpose approach works well for the Kindle, because nobody wants any distractions while being immersed into a good book.

But for a web-tablet, this Crunchpad would have to be dirt-cheap to stand a chance against netbooks (especially all those upcoming convertible ones). If I'm surfing, I want some sort of MP3 player, I want some sort of Twitter app, I want to be able to some simple image manipulation and I most certainly want some sort of word processing to collect results of whatever research I'm doing on the web. I don't think a completely neutered device (like the Crunchpad seems to be) is going to cut it for many people.

Also, it seems like an ergonomic mess - too big to use a thumb keyboard, no kickstand to bring it to a convenient angle while typing when it's lying on a table...