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I went from the iPad to the iPad 2 back to the iPad. The iPad 2 is nice, but IMO not worth the upgrade especially considering that the iPad prices have hit rock bottom. I just got one from AT&T 16GB WIFI + 3G for $350 shipped which is a pretty solid deal.
 
If you have the iPad 1 I think the only reason to upgrade to the 2 is if you are a power user or really need video chat.

If you are a first time iPad buyer then the iPad 2 is the best decision since you will be future-proofed.
 
Not into gaming...just read ebooks, email and web browsing...skype

If this is the case, absolutely not worth the upgrade IMO, assuming you're not bothered about video chat. Far better to wait for the iPad 3.

I've actually got an iPad 2 now, love it, but.....I sold my iPad 1 for a very good price last November, shortly after getting an 11" MBA, thinking I didnt need it. Missed the iPad as an entertainment device, hence why I bought a 2. If I'd not sold the 1 in the first place, I would have deffo waited for the 3 myself.
 
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