Blackberry's Playbook. What about the smartphones?

So Blackberry just made a rather large announcement introducing their newest product, the Blackberry Playbook. I don't have any official specs on it, but it looks to be around 7x5 inches and 9.77mm thick, according to the video feed. It has a 1080p non-proprietary HDMI port, supports Flash 10.1 (which was a very clear shot at Apple's iPad) as well as front & rear cameras.

Is this where we are heading now? Handheld tablets instead of smartphones? Would you rather carry around a bigger screen that can do a bit more than your current smartphone? I'm not so sure I would. I like having a phone that can fit in my pocket. Don't get me wrong, I love technology, and I'm always excited to see it moving forward, but do we really need tablet PC's? I'm know that in the years to come I will end up eating my words, but I don't see the appeal for them. I'm sure, 10 years ago, someone said they didn't understand the why you would want to get your email on your phone because you already got it on your computer. At least back then, getting email on your phone was a huge technological leap forward since you are no longer tethered to a computer. What are the benefits of a tablet? Sure, you can pair up the Playbook with your Blackberry phone, but now you have to carry around two devices. Who wants to do that? Sure, it has an HDMI port, which is great, but there are many other devices out there that already work with HD video so why should you shell out more cash for Blackberry's tablet? Call me crazy, but I just don't get it.

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*UPDATE*
The kind folks over at Crackberry.com have posted their review, along with specs and a video. Follow this link to go read it.