No. Its not about that.
Since most such people already use a laptop throughout the day and have iPhone. So its something they think might be more used by people who are not carrying a computing/entertainment device throughout the day.
However, I was watching the unveiling with my mom, and she thought it might be perfect for her needs. She doesn't have (or want) a smartphone and doesn't really need (or want to spend the money on) a full-fledged laptop. But she does want an easy-to-use portable device, especially one that she can use on trips for emailing, maps, watching movies, etc.
Oh, and the Wii analogy fits perfectly for her, too.