I do really appreciate all your suggestions and of course a refurb 11-inch MBA is till in the cards. Found some in the UK store and its very tempting.
My wife is not technically-minded. She gets easily (not overly) frustrated when she's trying to edit some stuff in Word or saving some photos. Most of the time right now she's with her best friend Amazon Kindle. She asked whether she can read her book on an iPad Air and i said immediately Yes. We have NowTV & Amazon Prime video and she loves watching movies via our PS3 console. I suspect she would also like to have some portable/more personal way of watching them in a smaller screen when she's in bed or cooking in the kitchen and i thought an iPad would fit into that.
Going back to documents i have heard that one cannot save documents in Office (especially in Word) in .pdf format. Is this accurate?
Asking again about uploading photos which app is the "ideal" one to do those basic crop/edit function? Is it thru the camera roll app? Someone told me not to do it in iPhoto. And if she does the basic stuff in the camera roll will that affect the size of the photo? And would the photo be somehow compressed when saved in the iPad?
The iPad is ideal for ebooks and movie watching. But it just isn't a very good device for heavy writing, which it seems your wife has to do. If it's within your budget, I'd consider an iPad mini in addition to a laptop for your wife.
And yes, it does seem that at the moment Word for iPad doesn't save as PDF. Pages has that function, and other Office alternative apps might, also.
Can't help with phto editing as I never do that.