Is there room for Tablets anymore?

I have immensely enjoyed IFA thus far. The tablets, laptops, tabtops, lablets, phones, etc. have been very exciting. Ever since Computex, I have been looking forward to getting my hands on a Transformer-like device with Windows8, and IFA has not disappointed. The Samsung Series 5 and 7 with S-Pen have been particularly intriguing.

Ever since I first experienced the Transformer Prime with ICS, I was convinced that the argument of laptops vs tablets was over. The ability to interact with your screen with your hands, touchpad, and keyboard simultaneously is, without a doubt, the best kind of computing, regardless of what activity one is doing on a computer, be it gaming, photoshop, web browsing, drafting, etc.

However, the problem with Window's 7 and OSX is that it is not designed for touch input. There are of course ways to do it, but the OS isn't designed for it. So when I first saw screenshots and rumors of Windows 8, I was so excited. Microsoft is doing EXACTLY what I dreamed of. A full OS designed for touch input.

Now having looked at the Samsung Series 7 with S-Pen devices, and the many other such devices, why would one ever want to spend $500-700 on a tablet, when one could get a full PC experience in a tablet form? Of course, right now, price is an issue, but when Apple releases another ipad, what could they offer? iOS just doesn't offer the power, programs, accessories, etc. that will be offered with win8.

Of course Apple will answer. The next release of OSX (Black Panther, Sher-Kahn, whatever it will be called) will be changed to allow for touch input exclusively, and at the same time, they will release a Macbook Air with a detachable screen (which would be pretty slick). But once they do that, what purpose would the iPad have?

I hope I expressed myself well. Apologies for poor wording, run-on sentences, and bad punctuation.

P.S. I have never owned a tablet. I have had lots of experience with them, but never owned one, so I could be totally off my rocker.