iPhone OS on the Apple Tablet?

According to iLounge, the oft-rumored Apple Tablet will run the iPhone OS instead of a less impotent version of OS X. If this turns out to be true, it'll be very disappointing. Likely implications of this include that of only being able to distribute apps through the App Store and only being able to run your own software on the actual hardware with the purchase of a developer license. Sigh. One day Apple is going to get around to producing a 2nd good product (after the Mac).

Of course, the mere existence of this device is unconfirmed, so details of its OS are even less certain but it all sounds like a typical Apple move.