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I don't see the iPad 3 as being suitable for taking pictures with it's built-in cameras. What I do see it useful for is as a portable remote high def display for Live View Still shooting, and for Canon DSLR remote control w/ touchscreen (several good apps exist for this).
 
I can see it being very popular, when taking pictures at home, for family/group get-togethers, etc, but out in the street? Not so much, because of the size.

I know that if I was at my parents for Christmas or something, I'd have no qualms about preferring to use the new iPad, over my 4S.
 
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I think the iPad3 can take decent point-and-shoot-style pictures. It's definitely better than nothing (cue the "best camera is the one you have" mumblings). However, in public, I think you also look like a stupid nerd tool (the kind who always got beat up in school) if you use your ipad to take pics. :eek: :rolleyes: :D (I use my iPhone or my Canon P&S to take pics.)

On the other hand, the iPad3 should make a decent quick-and-dirty document scanner, for those times when you need a record of a few pages.
 
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