Yes and No. The WiiU tablet will most definitely compete with the iPad as Reggie has already stated. He specifically said that Nintendo competes with any device that takes time away from gaming and controlling the living room. The WiiU tablet supposedly featuring eBooks, movie streaming and possibly downloading, music as well as apps make it a direct competitor with the iPad.
A lot of consumers do not even take their tablets out of the house. They are used for lounging and sometimes reading your favorite comic or magazine. Tablets are a convenient and efficient alternative to laptops and Nintendo's WiiU tablet could challenge iPads legitimacy as a home entertainment device.
Recent rumors like the one that the tablet will likely now have a much longer range then simply the living room point to Nintendo making the tablet a truly mobile home based device. Your in your room and want to play your WiiU but your mom is watching TV or your wife, power up the tablet to play from the comfort of your bed till your loved one is off the TV. You want to watch Netflix, read a comic, listen to music power up your tablet and go for it. With two tablets supported (if this happens) mom can watch her movie or TV show while her two children play WiiU and they could do so from another room.
Think about how apps like PocketBlu could work with downloadable titles? All the potential for the tablet controller? Their are many things Nintendo might do!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
