I think this product is amazing, and please know full well that I am an Apple fanboy. However, there is a hell of a lot more they could (and definitely SHOULD) have done with it. 1) add a USB port for god's sake! 2) Rather than using a souped-up version of the iPhone OS, they should have used a touch-friendly version of OSX. 3) It needs a webcam/camera. 4) Get a faster processor. 1 gHz? Sure, it's fast for a cell phone, but this is meant to be more than a cell phone (at least, that's my impression).
As it stands now, I think simply because it's an Apple product and it's new, it will sell very well (I know I'm probably going to get one), though adding a few of the aforementioned features would make it a must-have item.
And to those complaining about price, wait a generation: the price is going to drop by at least $100. And if you're complaining about the fact that it's a giant iPod touch, that's exactly what it is, and that's not a complaint. The iPod Touch is, in my opinion, the single greatest portable device on earth. The iPad is no less portable than a netbook, which are advertised as "crazy portable". And if you think you can get a better laptop for way less, you're wrong. Spec-wise, probably, but add multi-touch and Apple's incredible UI (which, even the PC fanboys must admit is second to none), and you've got yourself a whole new ballgame. Asus's portable tablet PC starts at $448, and it has a smaller screen and is a hell of a lot more than half an inch thick, plus it doesn't offer any of the style or ease of use that the iPad does.
Also, the iPad, within a few months, will probably have 10,000-15,000 apps designed specifically for it, increasing its functionality WAYYY beyond the iPod touch. Even as it is now (rather, upon launch), it has iWork available for it, which basically lets it do everything you'd like to do with a netbook (create docs and surf the web).
On a different subject, didn't a lot of people knock the iPhone as "just another touchscreen phone" when it first came out?
So, there's my two cents (plus a few) on it. Flame, laugh, point out errors in my logic (please do this, I'm taking a logic course, and I'd love to know any errors [approve]), do whatever you want. It's my opinion and I stand by it.