Impressed? Yes and no.
There IS room in the market between smartphones and laptops. That's why we see so many netbooks. They're one version of an in-between device. This is another version.
Price and [apparent] battery life of the iPad are its saving graces.
Video: Being able to watch hours of video while traveling, on something bigger than an iPhone and less cumbersome than a laptop, is a HUGE plus. That alone would have been worth the asking price when I used to travel a lot.
Ebook: Backlit, glossy screen. Not a chance I'll read a whole book on it.
Internet: Way better form factor than a netbook and hardly more cumbersome. Still, the iPhone is sufficient for me while traveling. But the pay-as-you-go connectivity makes this a winner.
Apps: Running native iPhone apps is a stop-gap measure. There's going to be GREAT apps for this.
Apparent is key for the battery life. If you can run 10 hours of video or games then that's great. We'll see.