I'm on the fence right now. I think it looks really good, because since I got my iPhone I've wanted a bigger one, but I certainly won't be buying until I play with it in the flesh. I want to make sure the form factor is conducive to use. It almost looks as if it's impossible to type two handed while holding the thing landscape, and I'd hate that.
The only thing that separates it from an iPod Touch is that it's bigger and has 3G capability. So, it's way too expensive, IMO, and you still have to pay for the data use. I was hoping it would be auto-tethered to the iPhone. It's definitely not "magical."
There IS room in the market between smartphones and laptops. That's why we see so many netbooks. They're one version of an in-between device. This is another version.
Price and [apparent] battery life of the iPad are its saving graces.
Video: Being able to watch hours of video while traveling, on something bigger than an iPhone and less cumbersome than a laptop, is a HUGE plus. That alone would have been worth the asking price when I used to travel a lot.
Ebook: Backlit, glossy screen. Not a chance I'll read a whole book on it.
Internet: Way better form factor than a netbook and hardly more cumbersome. Still, the iPhone is sufficient for me while traveling. But the pay-as-you-go connectivity makes this a winner.
Apps: Running native iPhone apps is a stop-gap measure. There's going to be GREAT apps for this.
I guess I'm impressed. It's just that I don't need another device.
Based on the price, and the fact the 3g data is $29 I think that was the biggest surprise to me. I expected low end $799 and up from there. The OSX vs iPhone OS really wasn't a big deal as I already use my iPhone for a ton of things on the road. I think people want to be perceived as a "power user" when in fact this device will more then do what they want.
Outside the tech forums the general consumer will eat these up as well. Toss all the blog/forum users together and were probably less than 1 or 2% of the consumers buying Apple products.