I agree, when I was still working in Tokyo more than 10 years ago, the ultraportable was the way to go. Small desk space, small or no space in the train, small everything. With no ultraportable in it's product line for more than a year, Apple has lost market share in this segment specially in Japan and other parts of Asia.It might be a region targetted device. It might only sell a small number in America, but could do very well in Asia.
I agree it's a very small market, but I can see reporters/photographers taking their Toughbook Pros into the field... Macs excel at graphics work, right?Although the Toughbook is a pretty cool concept, I think it has even smaller marketshare than the ultraportable. I don't see many Apples users (ie graphic design) going to Desert War anytime soon.