I'm not buying one.
I think it will sell well though, although i'm not completely convinced.
I have £1000 sitting in my bank account waiting to see what I will buy to compliment my 2008 Mac Pro and that thing will be a 13" MBP for sure now.
Not to nitpick, but it is "complement".
It is certainly a 'toy' device and not a tool as would have hoped for. The things that make this so (in my opinion) are:
- No accesable file system
...and that is relevant how? What exactly would you do with a filesystem?
If your applications can access the data they need to access, why would you even care how or where it is stored?
Palm OS never had a filesystem, yet it is (arguably) the most successful mobile device OS of all time. I use virtual Spotlight folders on my Mac - so in the end of the day I don't care where the physical file is stored.
Also, not to nitpick, but it is "accessible".
- No USB mass storage or printers etc
The status of printing is not known yet.
As for mass storage, camera connections are supported. This hints that MS is supported at least in some form or shape. Again, we will have to wait and see.
- Small amount of storage (64gb max)
- Not an HD display even (less than 720p)
64GB will fit a few Libraries of Congress.

Yes, I would want more, too... But 64GB will fit my entire iTunes library of 8000+ tracks encoded at 320 kbps/256 kbps VBR, and all the TV episodes I bought over the years.
As for "HD"... iPad's display is 1024x768. That is more than 720 horizontal lines. Of course, a "HD" badge on anything is just a marketing gimmick.
- No ilife even, surely this should have been done before iwork?
Photos, check. iTunes, check. Do you really want to edit video on an ARM-based tablet optimized for long battery life? Or burn DVDs on it?
- Too small.
- Keyboard onscreen will be a bitch to use.. on your lap? on a desk? holding it with thumbs to type?
A matter of taste... And we shall have to see.
- CODEC support will be limited to H.264 no doubt. Massive fail there, i refuse to re-encode every movie or tv show i want to watch.
Even if it is so, your local Bittorent tracker will undoubtedly have versions of the same TV shows pre-formatted for iPad. Just like it is done for iPhone now. Just sayin'.
- E reader support will be locked down
Says so... where? Epub is an open format with *optinal* DRM. It is used by a few existing ebook stores (like the Sony one). Since iPad supports the epub specification, it will be pretty hard to lock the device down to accept only Apple-purchased files.
- Software deployment model limits development too much for a device of this size, i can get OS X on a netbook NOW and it works well.
...for some particular definitions of well. I have seen netbook hackintoshes. The experience you are getting on these machines sucks, plain and simple. The screens are for the most part awful. All netbook keyboards are awful. The software that runs on them (hacked OS X, Windows, or Linux) is not designed or extensively tested on small 1024x600 screens. They are slow. All netbooks cheaper than $500 are made or rickety plastic.
As i said i'm pretty sure this thing will sell, but in my opinion it has missed the mark by a wide margin.
And what would you prefer? Something akin to Axiotron Modbook for $1000? For one, you can own one for about $1600. It is a niche product, because it uses old desktop metaphor interface with pen input. It is heavy, expensive, and is handily beaten by a combination of a 21' iMac and a Wacom Cintiq 12UX (I do own a Cintiq).
Also, assuming the CPU is an ARM 1Ghz equivalent to the Snapdragon in the Nexus one, this is an underpowered machine for any of the things i mentioned above.
Did you see videos of one in action?
It is fast. It does not lag. I don't care whether the CPU is ARM or MIPS or is running at 4GHz. All that matters is that it is responsive.
... and i had crazy dreams of using Pixelmator or photoshop on this.. I must be mad.
Check out Brushes (yes, it was in the demo). This is as close as it gets to Pixelmator on a capacitive display.
In short, it is awesome.