I have been following the rumours related to the Apple tablet for some time, but It turns out to be quite a disappointing release on many fronts.
The foremost question is "What is the intended target user base for this device?" Lets just dissect the spec's
It weighs only 0.7 Kg, but it also has a 9.7" screen, so its not a pocketable device and at best can be considered as a net book or UMPC competitor with a touch screen. The lowest model costs $499 and comes with a custom 1 GHz processor and 16GB of flash storage. We have phones with 1 GHz processors and 16GB of flash storage is next to nothing these days. My PSP has 16GB of storage and I feel the need to upgrade it.
On the other side a typical Net book costs $399 and comes with a 1.7GHz Processor, 1~2GB RAM and a 160GB HDD and the user can run Windows, Linux or even make it into a Hackintosh, but weighs 1.5 to 2 times as much, but still not unreasonable for the power offered.
Personally I feel iPad is a terrible combination of hardware. If they wanted a light weight and portable device, they should stick to a 5~7" screen getting even more battery life in the process and also increase the storage to a more practical 32GB/64GB (may be add a memory card slot at least) while keeping the price at a sane $499~599 level. If they want to compete with Netbooks on the functionality front, they need to pack more computing power into the device.
With its current specs, its usability is little more than that of a typical smart phone (and in many ways restrictive like the iPhone) only that this one comes with an unhandy 8.9" screen and a bulky 0.7Kg.
At best the $499 models works out as an eBook reader (which Saffin already mentioned). Maybe play audio as well, but video, I don't know how may vid's you can put on the device in its 16GB storage at a quality level that looks nice on its 8.9" screen. The other models definitely need work to deserve the price tags.