The iPad is basically a big iPod Touch with optional 3G internet, optional external keyboard and the ability to use iWork. It has access to an Apple ebook store, which is nice, but because it runs iPhone apps it can already read Kindle, eReader and B&N books as well as books from FictionWise and Books on Board through Stanza. So that's just not such a big deal. It's not a Kindle killer because it doesn't have an eInk screen, which means it's backlit, just like the iPod Touch, iPhone and laptops. Though I must admit it looks sweet for reading color comics on.
I'm still waiting for a tablet that can change from eInk to regular screen and back, like some of the technology demos that have been floating around.
What this is: A decent alternative to a netbook, because you can write and read on it, and do low key work related stuff. No flash, which means no Hulu etc, but most Netbooks are too slow for Flash video anyway, whereas the iPad can do video from the iTunes store and from YouTube. And it's supposedly very fast, unlike most Netbooks, and it's going to have rock solid OS software unlike the creaky Windows XP that's on the typical Netbook. So it's a good addition to Apple's lineup, but yeah, not exactly the revolution people were thinking about.