It will be hampered by it's lack of ability to take notes. Yes there are somewhat ok solutions, bluetooth keyboard, penultimate, etc., but at the end of the day they are compromises. IMO steve jobs vendetta against the stylus is a mistake, and Ballmer was right when he laughed about guys note being able to take notes on the ipad in his meetings. Don't get me wrong, a UI based on stylus navigation is wrong and I would advocate nothing at all changes on the ipad UI. The only thing I'm advocating is including a stylus in the ipad you can slide out when you need it, and include palm rejection at the very least. If you are the type of user who never uses his stylus, then it can sit in it's perch forever and it won't bother you a bit.
I'm VERY hopeful for the video I saw recently where they were able to get the ipad to be pressure sensitive and work like a real capacitive stylus. It still sucks to have to carry around the stylus separately, but I'll take it.