The major problem with the reception of this device is that many see it as a netbook, and apple has contributed to the ambiguity by including iworks and the dock. If you view the ipad as a webveiwer with advanced game, book and video functionality for sofa use, it largely succeeds--the easy chair at the presentation was the meta-message. When you try to find ways to make a netbook, it starts to seem lacking.
The flash issue will resolve itself, but not with html 5. Apple has just introduced the first real touch internet device--the whole phone internet arena is a toy/tool for early adapters--it is unweildy and slow--even in wifi mode. So there will need to be a shake out period for new browser development. One of those strategies will be an adobe based Flash port for existing flash content. Apple may not embrace this, but the coming rush of pc derived follow on products may. Apple however, may not be the minority player in the pad market; it may dominate as it did with the ipod.
I do think there is a major opportunity for someone else to make a better device and take the initiative in this market--i just don't know if any of the current players are up to it. Apple may win by deault.
Its seems certain to me that form factor will succeed, but not as a laptop replacement
Dell Mini 5
http://pinoytutorial.com/techtorial/dell-mini-5-android-tablet-specs-review/
3G + wi-fi plus it fits in my pocket plus I can make a phone call if I want to use it as a phone.
Im sold! this exactly what I need