It’s not indispensable, but much more useful than I’d envisioned. Primarily, I use it to surf the web while watching TV and while spending ‘alone time’ in the bathroom. However, I’ve started playing games on it, something I never seemed to do on my iPhone or my (Windows or Mac) computers. I also seem to doodle a lot, using both paint and vector drawing programs.
The on-screen keyboard is okay for URLs and searches, but I tend to use voice recognition when writing larger amounts of text. I actually like the iPhone on-screen keyboard more because I can use it one-handed.
Streaming video, from either my Mac (encoding in real-time, via WiFi) or using Netflix, is really neat, but it’s not going to replace my flat-screen. If I had a slightly different lifestyle, maybe 3G streaming video might fit in, but I don’t see a need ATM. I’m sure something will eventually compel me to upgrade to a 3G, though.
I think it’s going to find a million uses - someone noted online that it isn’t a large iPod Touch; the iPod Touch is a miniature iPad. I’ve already started treating it as roughly as my iPhone (tossing it around, dropping it, etc.), whereas I treat my laptop with kid gloves. The thing is - they have such drawing power that developers know the iPad will provide a new, enthusiastic market for their wares. It’s a chicken and egg problem, but Apple cleverly started laying the eggs three years ago with the iPhone.
With a critical mass of developers, there are a lot of clever people out there dreaming up uses for it that probably don’t make much sense right now. With the iPhone, I wanted a Palm replacement, but it vaulted way past that to where I can carry spreadsheets around in my pocket (QuickOffice), actually make stock trades in my chiropractor’s waiting room, look up real estate info while driving around and convince stores to give me a price that’s competitive with Amazon (I only did that once, though). The reference to Visicalc is appropriate – no one knew how much they needed a spreadsheet program until someone wrote a spreadsheet program.
An odd example: they still don’t have good handwriting recognition (see the WritePad app), but the way things have worked out, it’s easier to record what you’re saying, upload it to a more powerful computer, have that computer do voice recognition & send it back as text to the iPhone (Dragon Dictation). That might not have seemed like a sensible option several years ago.