Really depends on what exactly you want to do with it. It's perfect for casual web surfing, Email, Twitter and jotting down thoughts. I wouldn't try to write a book on it in one go, but the virtual keyboard is very easy to get used to, and great for typing a few hundred words or so at a time. Storage is tiny in comparison with a PC, but again, it depends on what you need it for -- DVDs will compress down to very high quality videos, if that's your thing, and it'll easily store a good few for taking on trips. One thing I'd definitely say is it isn't an outdoor device! I'm much happier with mine in a Tuff Luv leather case, that means you're not terrified of scratching it every time you put it down. I keep mine next to me at work and at home. You can surf the web, look at Youtube, Twitter, your email, etc all nearly instantly. I have a PC at home, but can never be bothered to go upstairs, wait for it to boot, use it for 5 minutes to check something, or look something up, wait for it to shut down again... This, you pick up, use, put down. Repeat. Yes, it's stupidly expensive. Yes, no-one *needs* one, however as a PC replacement for me at home, it's perfect. Oh, and the battery life is pretty good -- certainly up to the 10 hours Apple claim. Not quite enough to get though the whole weekend without charging though. Also got a 1st gen iPod Touch, which is wonderfully portable, but really not up to any serious web browsing.
I can never understand why people seem so polarised by Apple products -- a product is either good, or bad, or indifferent on its own merits. I'm not a fan of Mac-OS in any of its guises, as I find it too restrictive. However, on the iPad, that very restrictiveness becomes it's main feature. It does what it does well.
