yep. That's pretty much what I thought it would be - a Giant iPhone.
...but apparently, it's comfortable to hold, lightweight, and very, very snappy to use. I'll stick with my iPhone though, because it fits in my pocket.
I think this is aimed at people who don't really need a full laptop, but would like a very portable computer, that does more than an iPhone, and has a bigger display. Basically the netbook market, lumping in those customers who don't like netbooks because they aren't useful while standing, and aren't very good for reading.
I'm definitely a fan of device convergence, and if I read a lot of magazines, this would be going on my coffee table instead of a pile of paper. ...but I don't read magazines, I prefer doing my reading on my iPhone, or on my computer. When I need to get work done on the go, I use a laptop. There isn't much that the iPad offers me, so I'm not going to by one, but I suppose that beyond cool factor, I can see where regular users would like it, and use it.
Let's face it - most people who have laptops only use them for email, web, pictures, facebook, and the occasional word processing and presentation. The tablet does all this very well and is far more portable. Previous tablet PCs did not do this well at all. I think that's what the difference is.