Are you really that sure that these people who are 'interested' in the iPad are making a mistake?
Yes.
Do these devices you name -- "... that have the same form factor as an iPad (tablet, not necessarily the same screen size though), but do everything the iPad does-- plus more-- better..." -- really do it better?
Yes.
How do you know? Have you tried them?
I've used quite a few. My favorite was the Archos 604 Wifi, though I may be inclined to get an Archos 5 these days. I also own an iPod touch. The main draw of the Touch was the App Store (I would never have bought an iPod before the App Store). Using those same apps on a screen so large it doesn't fit in a pocket is not ideal, especially when I already have a device that will do just that.
If they really do it so well, why haven't they succeeded in over 10 years of trying?
Lack of advertising, perhaps? Had you heard of Archos before I mentioned it just now?
Or are you so caught up in the old "... a car is nothing more than transportation; you don't need all those fancy geegaws and horsepower or any of that stuff... " mindset that you can't see progress right in front of your nose?
Not at all! I know progress when I see it.
Progress is beautiful

(let's see who gets the reference).
And yes, there's netbooks; underpowered, undersized and underperforming copies of notebooks that are little better than the desktop computer of 1990!
I beg to differ. Underpowered, not for the same tasks everybody will be doing on their iPads. Undersized... I'd prefer to say "appropriately sized." First off, their screens are about the same size of the iPad screen, and when closed, some models can be merely an inch thick (think Asus 1008HA (though that isn't by far the best netbook)). Considering you'd need a bag to tote around the iPad (preferably something with loads of padding, considering half of it is glass), it should not be a big deal to take up another half inch, considering all the extra features you get in that half inch.
You have to put the thing down to use it...
The same applies for the iPad, if you want to type on it. Except with a netbook, you can put it with a flat surface and stand up and type (not the best ergonomically, but hey, it works). With the iPad, you have to sit down, cross your legs, set it on your legs, and hutch your back to type on it, since you can't just place it on a table because of its curved back. It'd be sliding all over the place whenever you hit the space bar!
You can't walk down the street and use it as any kind of a GPSenhanced or notwithout looking just plain dumb...
True, and I have to say I've never seen the point of GPSes in netbooks. I believe GPSes are most often used in cars, where you want to mount it to the windshield. Of course, this is a less-than-optimal position for an iPad, since it would prove very difficult to see around it.
And simply put, the netbook simply cannot do what most people bought them for. The tiny screen is hardly big enough for old-style web pages, much less the high-res screen-filling sites of today...
Most web pages are 800 pixels wide. When held in the portrait orientation, the iPad is 768 pixels wide. Most netbooks today have this as the vertical resolution. When in landscape mode, the iPad is 1024 pixels wide, whereas the Dell Mini 10, a common 10" netbook, sports 1366 pixels across. And then there are some devices like the Archos 5 that is 800 pixels wide... on a 5" display. And then there's the Sony Vaio P, which has an 8" screen that is 1600 pixels wide. Of note, this is the vertical resolution of Apple's 30" cinema display.
...and honestly there are better and cheaper products if you're wanting to use them as DVD players (disregarding the fact that almost no netbooks carry an optical drive.)
Yes, but at least you can add one on a netbook if you so desire, thanks to USB.
All in all, the netbook is a Volkswagen Beetle trying to compete with a Porsche Boxter. Even a Karmann Ghia would stand a better chance, but there aren't all that many Karmann Ghias in the netbook world.
Hey, VW's are awesome, even the Beetle! The Boxster is a "tame" Porsche for people who can't handle the real thing (say, a GT3). But I digress.
The iPad's biggest advantage is that it's using an already well-established touch OS that now resides on something over 100 million iPhones and iPod Touch models, while Windows Tablet Edition might reside on some 50,000 PCs. It is able to compete in the same functional ballpark as netbooks and is both easier to use and more mobility oriented than the netbook.
Windows XP Tablet Edition is barely different from the ordinary Windows XP, save for a few extra drivers to make it compatible with a digitizer. So if you want to look at it that way, Windows XP has a userbase of 400 million... in 2006.
No, grandpa. A car is not merely transportation. How you get there is just as important as the getting there itself. If what you say were true, we'd still be driving model-T Fords.
I couldn't agree more. But if you already own a car and a bicycle, are you going to run out and purchase a moped?
A bleating we heard often back in 2001 when the iPod was introduced.
And it was true. Still is, with the exception of the iPod touch. And even the Touch is only an exception because of the app store.
Many of us ARE in Apple's target market. We DO want this thing. The difference is that WE can understand why somebody wouldn't find such a device useful and we don't judge them by our own needs. So, I don't think you are an idiot, nor do I think you are lying to yourself about it.
Are you sure you didn't have to invent needs that fit what the device was capable of, in order to convince yourself to buy it?