We just got one in our IT dept to demo one of our web apps on it. This was not on my short list, but certainly didn't mind playing around with it today.
it's quite responsive and the web browsing experience was better than I expected. Most sites including vimeo, break.com, nytimes.com, cnn.com were able to play the videos with no problem. Video quality was pretty good despite the 1024x768 native res.
The Amazon kindle e-reader app was nice too, much easier to read than the actual kindle itself which we have here as well.
In general, I'm not a huge apple fanatic, but I had a positive first experience with the Ipad with only a few hours of testing. I think it would be good to turn it on, play some music, look up a few quick sites, etc. I can definately see the target audience who might use it for the same.
The question is, would i have shelled out $699 for it out of my own pocket, I'll need another few days to see if it would displace my small netbooks.