In a breathless report, Apple Insider speculates that Apple will release a 10-inch Apple tablet-device in early 2010, a super-sized iPod Touch-like device that could be the fabled “Kindle-killer.”

That larger screen could bring Apple App Store e-reading applications to a larger screen, rivaling the 8-inch by 5.3-inch screen on Amazon.com, Inc.’s popular Kindle e-reader or the 10.4 inch by 7.2-inch screen on the Kindle DX. It could use digital book readers like Lexcycle’s Stanza and ScrollMotion, and allow readers to surf the web while reading. Since Amazon owns Stanza and Kindle for iPhone, they won’t be shut out of this theoretical new market.

Here’s more from the article: “The 10-inch, 3G-enabled tablet, akin to a jumbo iPod touch, is the latest brainchild of chief executive Steve Jobs … He’s since cemented the device in the company’s 2010 roadmap, where it’s being positioned for a first quarter launch, according to people well-respected by AppleInsider for their striking accuracy in Apple’s internal affairs.”