A little unfair
No love? Apple doesn't need to subsidise it, they are in fact struggling to meet demand at the current prices!
The 16G model with 3G is just a little bit more than an unsubsidised smart-phone, which seems about right to me given the screen size.
Also, the pounds performance on the FX markets is not Steve Jobs fault! Although perhaps if the UK had more world class companies like Apple we'd be seeing a better exchange rate! Get used to this, because the pound may fall even further and all these toys are going to cost us more relative to our income!
The ipad is a very elegant device and its integration with the best application store in the industry is a killer feature.
If you feel it's too much, sure, get cheap netbook and miss out on all the excellent cheap software on the appstore, deal with the cramped keyboard and try and pretend touch interfaces are a gimmick.
Take your choice, it's a free country!