Is this the future of Windows 8 ultrabooks?

It'll depend on weight, price and whether the user is interested in anything other than 'consumption'.

I suspect for the majority of users an 'ordinary' tablet will be fine.

However, there should be a demand from business and from other users who are interested in production as well as comsumption for a tablet-sized hybrid. Let's hope so, anyway, as it's not much fun doing a lot of typing on a virtual keyboard :(