- Apple does marketing really well.
- Apple does ridiculously awesome UIs
- Complaining about the fact that it's not particularly technically impressive is irrelevant, most people buy Apple products because of the magic rather than tech specs.
However, thinking about it some more I can see a few problems for the iPad in general:
- Two of the previous 'magical things' Apple produced - namely the iPod and iPhone, had a clear application to get people in the door. In the iPod case it was n-thousand songs in your pocket, in the iPhone case it was 'look, it's an iPod you can make calls with'. People were already sold on portable music players and phones beforehand, Apple just took that need and made a much more awesome device.
- The iPad on the other hand does not have such a clear application. All of the cool stuff like maps/music/games and things can already be done on the iPhone (which most people will be carrying around anyway). The other side - normal web surfing, applications, writing, graphics, etc. - is handled quite nicely by Apple's laptops. I'm not sure why someone would buy an iPad instead of an iPhone, and then, once they have an iPhone, I'm not sure what the iPad offers that makes it worth the extra $500.
- Apple have had beautiful, well marketed things in the past that haven't conquered the universe (the G4 cube, for instance, which was lovely). Marketing isn't always enough.
Still, I have to love Steve Jobs if only for his ability to (apparently) congruently gush that as a tablet the iPad is much better than either phones or laptops, both of which his company sells lots of.