I had an iPad 2, 16GB WiFi just sitting in a closet, so I took it to Best Buy yesterday and was quite happy to get the $200. Walked straight over to the iPod section and got my daughter a 5th gen iPod Touch.
I agree with others that it's a great deal if you have a base model iPad 2 that you want to get rid of, but you get diminishing returns with the iPad 3.