I think this is actually quite bad news for everyone, save a few who benefit financially from this product selling well (like shareholders or application developers).
The problem is that it's not really that good a product. It's missing many critical features, and while people can say "oh I won't use that", how long is it going to be before Apple is releasing another product without something you want because everyone bought the last one anyway? Remember the FireWire ports going missing on MacBook Pros fiasco?
It could do so much more and with such little effort. Things it doesn't have like Flash, USB and multitasking could be very easily added, but were omitted for reasons unknown. This not only has an effect on Apple's product, but as the new 'market leader' in this segment, it dictates what all the other products on the market have as well. Apple has set the bar, it's not very high, but once again the better products will be sidelined because of the hype surrounding this device.
We as consumers are missing out on the best technology around because of the way iPod, iPhone and now iPad have been marketed. It's such a shame because I would LOVE to see what some of the talented developers working on iPhone applications could do if they had the hardware that is available in other smartphones.