This is a computer for people who neither know nor care about computers. Multitasking, lack of Flash, removable batteries, etc, are all non-issue for these people. They want to do these things on their computers just about as much as they want to upgrade their fridges or washing machines. Remember "Aunt Tillie", who the fool Raymond used to blather on about? Well, her computer just turned up.
If you can make a list of things that the iPad doesn't do, and you understand the words in that list, then you're not in the target market.
I cannot conceive of a circumstance where I'd use an iPad where I wouldn't be happier with an actual laptop. But then the thing isn't aimed at me.
It's been really funny, this past couple of days, watching the geek community running round, getting itself in a lather over the limitations of a product that's just about as aimed at them as Windows XP Starter Edition.