I was really looking forward to this as the thought of a large-screen iPod Touch with a few tweaks to replace netbooks seemed promising in a lot of ways, but there's no way I'll spend my money on the iPad in its current 1st gen state. Mashable's What's missing from the Apple iPad and Why Apple's iPad disappoints pretty well sum things up. The downsides that stand out for me:
-No multitasking. This is one of those things that is slightly annoying on the Touch but with the larger form factor and supposed increased functionality of the iPad will become a lot more of a nuisance.
-Poor text input. I was looking forward to improved text entry over the Touch's small, error-prone software keyboard but the iPad's looks to have gone too far in the opposite direction, too large to be practical for typing while holding the device (for example while on the train). The wide bevel won't help.
-Closed file sync. Not being able to simply drag and drop files directly from a PC or Mac to the iPad will be a big big inconvenience.
-Closed software environment. It sucks to only be able to install apps that have been approved by Apple, especially given their reputation for rejecting apps on a whim.
-No camera. Really what were they thinking? The thing screams video chat. (What they're thinking is they'll sucker the early adopters into getting the camera-less model then double-dipping when the 2nd gen, camera-equipped model comes out, which I guarantee will be within a year.)
-No gaming d-pad. I knew that would happen from the beginning but it goes to show how far in excess Apple take their form over function design philosophy. This thing could be the ultimate mobile gaming device, the sort of PSP-killer that would have gamers buying the device despite costing three times as much, if they just put a d-pad on one side and four action buttons on the other. There's certainly room for them with that massive bevel but Apple don't want to defile their shiny new toy with buttons. So instead we'll get gimmicky games that rely on tilt and poor touch-screen controls instead (which will be even more difficult to control with the large form factor).
What sucks is that Apple is about the only company that even tries to innovate, but I'm hoping one of the netbook makers (likely Asus or HP) will release a touch-screen, tablet model sometime in the next year that provides a worthy alternative. Will just stick with my iPod Touch and perhaps a cheapo conventional netbook till then.