I don't think this device (well the first version anyway) is going to do blockbusters sales. It'll be like the Apple TV or MacBook Air. Look it's simple to use but isn't that what people say about the Macbook also? An iPad can't replace a MacBook because you still need a desktop client to sync with. It'll be a second, luxury device. So is the iPod Touch, which the iPad will probably take many sales away from.
I don't like almost everything about the iPad. From the hardware (such a large bezel and that home button - ugh) to the OS (homescreen - pssh, no multitasking - yikes). I'd never buy this as a laptop or even a netbook replacement (but I don't use netbooks so moot point).
A quick sidenote: the one benefit from the super iPod Touch approach is that many of the accessories and apps in the AppStore already solve some deficiencies right off the bat. And I've already paid for them :lol. There was no mention of printing but many printer companies have already made wireless printer apps available on the App Store. Likewise there was no mention of comic books but there are already apps that handle that (the comic book industry better get a standard format in place if they know what's good for them). PasteBot Sync will be an interesting experience on the Tablet as will be Jaadu and LogMeIn (VNC apps). There are writing apps, some with handwriting recognition, made for the iPhone that would work even better at the Tablet resolution. The Dagi and Pogo styluses should be even more useful with the iPad. And if it's running the iPhone OS 3.2, can we expect it jailbroken in a few months

? While Apple has disappointed me in most regards, it still looks a bit promising.
But the real draw for me is the iBooks application. Like Tobor and MThanded mentioned earlier, this could be a decent ebook device and at that price it's very competitive. (By the way, is this the first time that Jobs had kind words for a competing device? I'll have to watch the video but the blogs indicated that he was quite respectful to the Kindle). I need an ereader and my other choices are (in order of preference):
B&N Nook: $259
Kindle DX: $489
Kindle: $259
*insert bunch of upcoming fancy ereaders, demoed at CES, that I think start at a baseline of $400...
I have no problems with reading on LCD and actual dislike the Kindle and Nook refresh so e-ink is not a plus for me. Besides e-ink, what do those other devices do better than iBooks? I'd like to know but, for only $10 more than the Kindle DX, I can't say no to the iPad.
That case is sweet but it's $40. Plus Pages, that's $550 I'll be spending before tax. Hmm...