Until the iPad can run Microsoft Office and print to any printer it will just be a toy for most.
Why the business world and schools for the most part remain tied to Office is strange but when I show the iPad to those looking for a laptop that is the first question they ask... does it run office, can it print, can you use a keyboard and mouse?
The truth is it COULD do all those things but Apple and MS so far want to keep it in it's place.
Why do people insist on clinging to this myth that the majority of users want Office compatibility?
Business, currently at least, do indeed need Office but even there Microsoft is bowing to pressure from services like Google Docs and moving the core Office tools (i.e. the subset that 90%+ of users ever actually use) to a cloud service. It's only a matter of time before those services work properly across the board on standards-compatible browsers.
But frankly that's more-or-less irrelevant because the iPad is after a MUCH bigger market than the business market. The home market, the personal use market, the consumer market (for lack of a better phrase) is where the money is these days and its been the main driver behind most of the OS changes we've seen in the last few years. And the bulk of that market don't care about Office, these days they rarely even need printing capabilities as more and more we start relying on electronic communications. For those users they want the sort of productivity tools that we're already seeing starting to come to the tablet market. Image editing, audio editing, easy ways to create relatively small chunks of content for web sites, blogs, social networks and on.
If you do a job that needs a keyboard / mouse then BUY A DEVICE BUILT FOR THOSE TASKS! This isn't complicated, there will always be a market in the foreseeable future for devices with a lot of power, big screens, great quality physical keyboards and input devices that give real granular control. Tablets (and other devices running consumer-focused operating systems, they'll come along) are built to meet the needs of the consumer market and that's a HUGE number of potential users. Yes, those devices will probably spend more time consuming content than creating it but the nonsense that's put around that they are ONLY consumption devices is ludicrous. They're certainly not 'toys' and I'm getting sick and tired of defensive geeks clinging desperately to that fallacy in an attempt to disparage those using them and cling onto their nerd cred.
Oh, and as much as I hate to say this about a Gizmodo piece, it's more-or-less bang-on. Unfortunately you're going to see a really horrible response to pieces like this for the foreseable future as a holy war to make Vi/Emacs look like a border skirmish takes hold.