As someone who worked on the iPad v1, I can tell you, it was a product built in search of a problem. It was going to compete against the, then, growing Netbook market. Steve Jobs thought Windows was going to win that market and hastily threw a team together to answer for it. However, during several all-hands, no one except SJ seemed even remotely excited about the product. "These things will probably sell in the educ…
I still remember people saying that the iPad was just going to be a big iPhone and what is the point? I NEVER understood this. I was one of those people that was immediately excited about the iPad. Being able to lay back in bed and casually browse the web, read magazines, watch movies, play games? On something with a decently large screen, decent battery life and something that wasn't bulky? PLEASE TAKE MY MONEY!!!!…
Similarly, the web isn't any better on an ipad vs. an iphone; its the same mobile website but with more white space to fill the scale.
I could never stand gaming on a touch screen device, personally. I know people play fortnight on their phones these days, but I can't stand the lack of tactile response with virtual thumb sticks and the fact you have to block the screen with your thumbs to do anything at all. Games tailored to the device, like tap tap revenge, were fun but only for 10 minute spurts.
I get the merit of having a 12" light weight screen that connects to the internet, but apple hasn't sold me on the utility to make it worth dropping the couple hundred bucks, especially when my phone does it all while also being a phone.