It's either that or you pay full price for a notebook.
You can buy a full priced notebook for $499.... the same price of an iPad. What's your point?
My point is, I can see a market right now for a notebook where Apple takes a MacBook, puts it on ARM, and makes it thinner and much lighter.
Take a MacBook Air, modify the body to differentiate between the two product lines, offer color choices (not needed, but might help sell the product and help differentiate secondary devices and primary devices), put an ARM processor that is faster than the iPad in it, have it have 10 hours of realistic battery life, install full-fledged Mac OS X on it which runs on ARM, simply call it a MacBook, sell it for $699. Booya.
The perfect secondary device for everyone, it is more flexible than the iPad, but won't necessarily completely cannibalize the iPad because of the price and a Touchscreen device is still better in some scenarios such as couch web browsing and the gigantic App Store appeals to people.
You might say, well, why don't people just buy a full fledged notebook for $699? Show me a notebook with the design and lightness of an Air and 10 hours of realistic battery life. Atom netbooks don't count because what the netbook market today is is basically cheap, crappy notebooks. They aren't good at anything because of their cramped keyboards, and their performance is hideous.
Hell, Apple probably has Mac OS X already implemented on ARM as of two years ago, just like how they had OS X on X86 in their labs in 2001.