Any paradigm shift that requires the original paradigm to remain intact in order to function is anything but "mind blowing". Consider just how useful that iPad is without keeping a conventional computer around to service it with iTunes. Or develop for it. Or back it up. Or print. Or access other hardware and storage media. Or any number of other basic uses we would have to give up to replace our notebooks and netbooks with a yPad.
Shift to cloud computing answer that? Let's look at some facts. iPad was not meant to replace anything, it is an in between device; much like a netbook is. But with the apps that people are coming up with in the app store, it is a darn brilliant piece of machinery in an awesome form factor.
Servicing with itunes - could eventually be done over air, much like you can buy apps directly on your iphone. granted a little slower; you could do backups and restores over the air with the right apps (everything backs up and syncs with a farm. when you want to restore, a small chip with an prom allows for installation of the original OS. Once back up, it sends a signal to download your last backup). like I said, a little slower. Note PROM (programmable, read only memory) - could be used with an internal code to know which data belongs to which machine to restore to.
Print - there are already apps that will recognize wi-fi / over the cloud networked printers. Up to the developers to put that in their apps.
Access other hardware and storage media - there are a lot of apps that allow sharing through a browser over wifi. PLus if you have mobile Me, Apple has the iDisk app. PLus I think future developments will allow for a USB to connect to. Maybe.
Paradigm shift as in pretty darn close to a real computer, with smaller non-bloated full featured apps. Heck of a lot better than a PDA, almost like a real computer (using what we call a real computer). and blows away those early pocket PC'ds Compaq put out years ago.