They're not in the same niche. The iPad 2 is a laptop replacement. It has the feel of a laptop but stripped down. There is very little sacrifice with web use, document viewing, etc.
Anything smaller, such as the Galaxy note, is a step backward. Web browsing, document viewing are going to feel cramped.
But they are very nice no doubt, and being an owner of both, I can say the Note does a good job but does not replace the iPad. The iPad is just more comfortable navigating.
In other words: Your nuts if you sell your iPad 😀