Content is the key.
Assuming the iPad is as practical as Apple says it is (can I read on a train or bus in rapidly varying light?) and it really does have a full days’ worth of battery life then this product will rise or fall on the content available on it and the business model behind that content. Can I get my daily newspaper ‘delivered’ to my iPad every day? Can the publisher of that newspaper deliver it to me via the iBook store and thus avoid making the content available on the web and having Google aggregate it? Will Apple allow my newspaper as delivered via the iBook store to carry, say, Microsoft advertising?
Will I be able to buy an annual subscription to a magazine via the iBook store? Or will I have to buy each issue of my favorite magazines separately each month? This matters to publishers because subscription revenue is more predictable than ad hoc sales revenue. It also matters because subscriber numbers as well as ‘circulation’ figures sell ad space.
Will the iBook store, like the App store for developers, make it possible for individuals to publish books, magazines and newsletters directly? How will this go over with the publishing establishment?
It is the answers to these sorts of questions that will make or break the iPad.
...And by the way; if its an iPAD will you be able to draw a free hand sketch on it? Will you be able to import that sketch into the iPad version of iWork? Will add-ons like Mathtype (allows you to write mathematical symbols) be available for the iPad version of iWork? If add-ons like this are not available the iPad will be seriously limited in the education sector - which will leave netbook vendors vastly relieved.