I agree with the gist of your post, but I think you may be off the mark with your last point. Sales of other MP3 players and smart phones didn't hinder sales of iPods and iPhones, but rather boosted them (likewise with Amazon's Kindle and its competitors); I think the same will happen with the iPad.
$400 <u>gas</u> per gallon
1 barrel of oil = 42 gallons --> 42*400 = $16,800 oil barrel
That price is only for the most remote bases, not for the majority of them.
Just trying to consider both perspectives, I don't think either is a slam dunk.
Higher grain prices + US net exporter => good for US
Weaker dollar/Higher prices of imports => good for US exporters and US employment
Higher oil & distillates prices + US net exporter of distillates => bad...
Inflation should hurt Treasuries, but <i>help</i> equities, at least in nominal terms; considering the leverage in futures, that should be a net gain.
Even though I agree that the market is forgiving with averagers until is not.