First of all, everyone knows that there are many complaints with the device. I am not going to rehash those here. They have been covered ad nauseam, and if you really would like to find them, search any gadget blog for a list of gripes.
The epiphany that I had was this: the iPad is for content consumption, while traditional computers are for content creation. You have heard the first part before. It is no secret that the iPad has a great form factor (like that of a magazine) for reading, browsing the web and watching movies/videos. The latter just occured to me. The things that I will not be able to use the iPad for that I use regularly: Photoshop, and Lightroom 2. To a lesser degree: Garageband, iMovie, Logic, Final Cut etc. Most people have no idea how to use these programs.
Within the tech community, photoshop skills are essential like a sidearm in the old West. Most people, however, use the jpegs straight from their camera, and think editing video requires godlike powers (just try showing an edited video to your mom, she will think you belong in Hollywood).
As I work in my computer dealer, people often tell me about how they have 250GB of RAM on their computer back home. They don’t know the difference between an iPhone and an iPod Touch. As soon as people start seeing them around, and watch people browse the web, read magazines and books, and use whatever apps are made specifically for it, it will become an object of desire. It already is. I have been walking around the school with a Barnes & Noble Nook e-reader for the past month, and have been asked literally 3 times a day if it is the iPad.
When people go to buy a computer, they will ask the prices (as they always do) and when they find out that the sexy slab-of-glass one is $500, they will buy it. Kids will sync it with their parent’s computers, even if they are away at college (yes, this is risky, but people do this. They don’t backup, they sync their iPods with friends they met in South America on study abroad, etc). There will be one computer in the home that can be used for content creation like Word docs (primarily, with some using the attachable keyboard with the iPad), photos, etc.
What about those people who do program, edit movies and music, blog heavily, design? They will have one too. Instead of heaving their MacBook Pros around on trips, to school, the plane, they will use their ____ (not necessarily an iPad) except for when they need to produce content.
Picture a Dell laptop. Why, are we so stuck on the idea that this is what a computer looks like? Browsers, applications and interfaces have all been molding and changing to become more ergonomic, why not explore a little? I absolutely love the way an iPhone is used. Why am a still using a computer that operates like a big Blackberry?