"it has a bigger screen, twice the battery life, all sorts of needed connectors including an HDMI connection, camera, multi-tasking and more.
And it is supposed to come out at $350."
The 12" Linux-based JooJoo (formerly CrunchBook) is now set to be released at $499 after early talk of $300, so that $350 sounds very optimistic: good, big touch screens do not come do cheaply ... yet. I am sure there will soon be plenty of "slate" options for the OP's goal of external viewing. (By "slate" meaning touchscreen only, as opposed to bulkier, more expensive tablets with twist screens and keyboards.)
What sort of OS is better for a device with only a touch screen (and maybe a camera) for input, and a screen too small for a PC desktop layout with multiple windows to be convenient?
An established PC OS with lots of apps that are based on mouse/keyboard/PC desktop model, or a cut-down "smart phone" OS with fewer apps, but with the OS and all apps designed for touch input and a small screen? For a slate, is it easier to up-grade a phone OS and apps, or downsize a PC OS and apps?