^^ There's wisdom in your post.
I'd argue that if you surfed around here long enough, a large percentage (if not majority) of the iPad owners are using theirs for a) reading books and b) surfing the web. They aren't big gamers, they aren't big photo bugs other than maybe to keep a few pictures on their device and many of them haven't even set up the email or iPod functions yet, if they ever will at all. By and large, they all settled on the 16gb iPad as space was irrelevant to them (books don't take up that much room).
For this crowd, a Nook Color would be more than adequate to meet their needs. Out of the box today, running firmware 1.0.1, its a serviceable eReader that can handle ePub books just fine, either purchased from B&N's store or "sideloaded" from a PC. The browser is nothing to write home about and I'd easily give iPad's Safari browser the vastly higher marks there. But its a version 1 device, barely two months old, and for what you pay for it ($250), its a bargain for this purpose. Having one side by side with an iPad, the smaller screen gives you a higher PPI. Coupled with the smaller screen, this would normally make for a better reading experience. However, the software still needs some work and is a little quirky in places. Then again, I'd say the same thing for iBooks so its a toss up there.
My friend showed me his Rooted Nook Color last night over lunch. Wow. What a difference rooting makes to this thing. It runs faster than stock, you can drop the Kindle App from the Android Marketplace onto your Nook Color, the Nook Color software is all still there so you don't lose anything, and its now a WiFi 7" Android Tablet for $250. He was running something called "Dolphin" for a browser and it was even doing Flash natively. Even pinch and zoom was now activated on the device (which, unrooted, its not). Even still, its not an iPad....but for $250, a Rooted Nook Color is likely iPad "enough" to satisfy the needs of likely 50% of the current iPad user base.
My advice: If money is not an issue, buy the real deal and get an iPad, even the 16gb will do. If money is an issue, and all you really want is an dark-lighting eReader with some web browsing capabilities, buy a Nook Color, root it and spend the remaining money you saved on books and media.
The NookColor, or the $249 model, has always had Android. That's how Barnes & Noble designed it. It has a couple of preinstalled apps, that's it. You can root the device but only a tech savvy person would ever attempt it since it has a bunch of steps and the potential of very easily ruining the device. I'm doubting he has done so, you should check it out. Either way, the Nook does not make a good tablet. Out if the box it's just an ereader with Pandora and chess. It's convenient if you want to read while listening to music.
Not true. The steps to root a Nook Color are really no different than jailbreaking an iPhone, other than the need to format a microSD card to accept the Auto-Nooter (jailbreaking app) application. And even those have been automated via a number of scripts and batch files that exist out there. Its really a piece of cake. My friend has done his (I've not done it....yet.....might decide to) and he couldn't even figure out how to set up his gmail account originally so he's definitely not a techie. Anyone who can follow a short list of 8 steps can do it.