If Apple (NSDQ: AAPL) is indeed working on a large internet-connected tablet that would be bigger than an iPod, but smaller than a laptop, then here’s the scoop according to Piper Jaffray’s Gene Munster, who even provides a computer-generated mock-up of the fictitious device.

Fortune reports that according to Munster’s sources in Asia, the device will be run most iPhone applications, but also have a separate category of apps; it will be primarily used for web-surfing, email and digital media, it will be priced between $500 and $700; and it will be connected to a cellular connection (AT&T (NYSE: T) or Verizon). His guess is that it could sell up to two million units at $600 each in 2010 to generate $1.2 billion—adding 3 percent to Apple’s top line.

—While Apple is trying to recover from the firestorm of negative publicity surrounding its App Store policies, some developers are looking for the path of least resistance. Cydia, an unauthorized app store that’s only available to unlocked phones, has a number of banned apps, including Google (NSDQ: GOOG) Voice. [Wired]

—Turns out the Sirius (NSDQ: SIRI) streaming iPhone app is not that popular—probably because it costs $2.99 a month in addition to our normal subscription. [AllThingsD]