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The 3.0.2 update helped a lot with the TouchPad. I bought one but took it back for an iPad 2. The thing the TP is lacking is apps. Most of the big names app aren't even in their app store yet. No Netflix, only one Twitter app, which isn't half bad, no Google +, etc. Also, it doesn't render some websites properly, but the 3.0.2 update is way better than the 3.0.0.
As someone who has owned the following tablets:
Touchpad
Asus Transformer
Ipad
I must tell you the Touchpad was seriously not even close to ready for prime time (this is after the 3.0.2 update). It struggled changing pages on pdf's, almost no apps, and overwhelming lag all over the place. People always talked about how great the WebOS platform was so I always wanted to try it out, but did not want to give up my iphone. I went onto the precentral.net forums to see what tips I could get, and the users there openly talked the many faults of the Touchpad and ways to work around it's shortcomings. I knew then it was time to take it back - if I still found it unbearably slow after the 3.02 update, then I can't even imagine what it was like pre-3.02.
I traded it in for the Asus Transformer, which was very very very surprisingly a smooth user experience. People often talk about Android in a negative light, but Honeycomb really was an incredible OS. The difference between Touchpad and Transformer was like night and day. Alas, the Android market for tablets just isn't there yet so I had to return it for the iPad.