We hearing rumours that HP has gone as far as to entirely cancel the Windows 7 tablet project that it was so excited about back at CES2010 in January. The reasoning? Because Windows 7 doesn't provide a good enough touch-screen experience.

The device was unveiled by Steve Ballmer during his keynote at the Las Vegas technology show. We then got a trailer, a flash walkthrough and another trailer, pricing and a release date, and then specs and yet another trailer. All that looks to be in vain, however, as a source has told TechCrunch that HP has terminated the project.

It looks like HP has been dissatisfied overall with Windows 7 as a touchscreen operating system. There's also rumblings that HP might ditch Intel chips entirely for its tablet lineup, due to their power-hungry nature - meaning the company would have to rely on competitors like Qualcomm instead.

Given HP's recent acquisition of Palm, it's likely that a WebOS tablet is in the works somewhere, and HP has confirmed that it's working with Google and its Chrome OS platform, too. If you've got your heart set on an HP tablet, then don't consider your dreams smashed just yet.