I have a netbook/32gb. ($299)
I have a tablet PC/60gb. ($499)
Both also have USB ports, MicroSD slots, Webcams, mic ports, and can still run any app with the same functionality as the included iPad apps as well as 99% of the useful ones available from the app store. Both play more media formats as well. Both have stereo speakers (yes cheap ones like the single iPad speaker).
What I appreciate about the netbook and PC is their ability to be improved as my uses for them increase. I'd love an iPad too, but until they prove it can print to my networked printer and be memory upgraded after purchase it's not worth $499/16gb to me. My tablet can be used anywhere the ipad could. It doesn't need another PC or Mac for content though.
Good point about the big Kindle being overpriced. I agree. I've got the $249 one. It's worth that.
As for "Will the price go down?", Jobs has indicated he would do what it took to keep hem selling, even lower the price if need be.