I think I'm in the perfect demographic for this thing.
Consumer has no laptop? Check.
Likes to read/look at websites in bed on iPhone (which was a gift), but it's too damn small to look at for hours? Check.
Has a 24" iMac because it was more bang for my buck than any Apple laptop, and the screen is awesome for editing media/playing "important" games (World of Warcraft)? Check.
Never seems to have much more than $500 at a time to spend on something like this, but would get a LOT of use out of an iPhone with a bigger screen, and doesn't want a damn netbook? Check check.
I have a few complaints/concerns... Would I be able to listen to music while I surf the web? If not - fail. I don't need heavy duty multitasking - that's what my desktop is for - but some would be nice.
The OS looks absolutely awful. I hope you can add more than 4 icons to the dock, and I wish there was a better way to display your apps, because the "iPhone icons on a huge screen" look strikes me as really rushed and half-assed, and I expect more from Apple.
The video of the calendar app seems unintuitive. They show the guy's finger pressing the tiny little arrow at the bottom of the screen to go to the next day, but the calendar app looks like a book. Does this mean you can't just flip the pages with your finger like you would a book? And why not? If you really have to use the small arrow to navigate this thing, it seems like a huge oversight. I like turning virtual pages.
No Flash.

I'd love for the internet to stop using it, but like, they haven't yet, okay? A large part of the internet is completely Flash-based - and not just local restaurant websites, either. Disney and Apple need to have a talk if they're such close friends, because every damn Disney website is absolutely dripping in Flash.
I don't really have a problem with the onscreen keyboard, as I type faster on the iPhone than I write with a pen. But even saying that, I think it's a mistake to not have a stylus for certain tasks, at the user's discretion; I'd love to be able to use this thing as a virtual sketchbook, but that would require a stylus. I don't want to use my fingertip to draw, and I won't. Give me a stylus for drawing!
As far as the good, well... The iPad (really bad name) isn't groundbreaking but it could be very useful. The price is a NICE touch for me... and it'll only get cheaper - awesome.