A couple points.
One why do people make arguments that they can't see spending $500 (and change) for something that is a passive media device. Do we not already do just that, and have done that for decades. It's called television and they are in more homes then computers. Hell we had VCR, then DVD players, and cable boxes, then DVR's and Blu-Ray players all for having a stable media device.
So clearly there is absolutely a market, a vast one at that. That is geared to being a fully passive video device.
I love mine (with very few quibbles). I have read several books now and have had no problem (one quibble is in direct sun light, ie if you read outdoors, it works poorly, but thats something I don't do outdoors) and have not been bothered at all by weight (again I have several large books that weight more then the ipod).
Internet as mentioned above is avery beautiful thing, but it isn't what eats the most of my time.
Video isn't perfect (no 1080, but 720) and the ability to take with me a vast selection of video and get into almost any position (sorry no laptop can do this) worth a screen large enough to make the viewing experience enjoyable (unlike phone/ a large mp3 players). One that I can easily use in bed at night with my boyfriend and not disturb each other, and both fit on the bed (this was a problem with laptops, even our net books taking up to much room).
Comics, simply put I would have bought it just for this. I have half a TB of digital comics that I love being able to fully access and enjoy.
My best friend is using it for children books (the color something quite common in books for children) and screen quality really are a joy. And on the go so much easier for story time (in the car, waiting for the other kids fits easily in a her purse and allows a variety in the amount of space one book would take).
It truly is a great all around mobile media device, in a way that laptops aren't. And on the media device side it has one vast, vast advantage that has nothing to do with its mobility or weight. And thats it's exceptional battery life. I mean to watch the Theatrical cuts of the Lord of the Rings and not have to recharge or be wired in, is simply not possible on any laptop I have seen.
I have yet to travel with this, but clearly as a mobile media device its ability to nail so many forms of media and do it for such a long period of time and in such a small (yet still large enough to be enjoyable) should be a huge boon for travelers, and packing.
Now to another quibble, the lack of camera's. Personally I hate cameras. Don't use them on my phone, don't use them on my computers, just don't use them. And I certainly don't see the need for one to really be used to take photos. But I can understand for people who like to video conference (I have a coworker who's only means of seeing her family is this form of communication) and in that regard I do hope they eventually add this.
Quibble #3 is being addressed and according to news reports will work on the first versions of the Ipad (which is nice thank you), and thats multitasking. Not a huge issue for my use, as it does allow my primary multitasking music and reading already, but it is still something that is needed and should be up very soon.
Quibble #4 If you are a huge video watcher from the net as opposed to owning your own media (my personal preference) then its forever lack of flash is limiting. But this hardly ever effects me. But everyone is different on this issue. And for many this can be a huge factor.
Games, while the games on the Ipad so far are far, far superior to the products for the iphone, they aren't going to replace console or Computer games. But they kick the crap out of any portable game system I have seen. But this is something that I not that into (my boyfriend is far, far more the gammer then I will ever be).
And for those who are looking for something to fully replace your laptop, this isn't it. For starters it isn't supposed to as it needs a home computer (laptop or desktop to act as its hub).
But to expect it to, seems illogical to me. When laptops first came out, how long did it take to get laptops that were cheaper and did everything as well as desktops? I don't even know if we are there now and laptops have been out for many, many years.
Another often mentioned complaint is that the device isn't geared for being a creative platform, but one of consumption. Which isn't 100% true but it is geared more for consumption then creation.
But I don't see that as being much of a limiting factor as most of the computer use in the US is consumption and not creative.
But it is a luxury item (as all media devices and computers devices are).
For me and my boyfriend we both loved it enough that we ordered are 2nd one today. And neither of us are exclusive Apple consumers as we both have computers both from apple and others, mp3 players from apple and others, and only one of us has had an iphone. In fact its the first apple product that we both immediately fell in love with.