WOW! Thank you everyone, my mind is now numb. LOL.
Kudos to the community for making the issues known, but I take away a few points for some not implementing something even close to the scientific method in drawing conclusions or theories.
I can certainly understand the mind-set however - welcome to the world of Windows! Over the years the main solution to compensate for bloated and inefficient code, larger programs that need more resources, etc etc was to throw more hardware at it causing the vicious circle.
This is certainly justified to a degree, but it's not always the best solution. I'm glad to see this hasn't gone unnoticed in the messages here. There are so many variable involved, narrowing them down and creating benchmarks can be a painstaking process - after all, we do want to compare apples to apples as much as possible.
It's only the 1st gen iPad with many software updates to come, and eventually 2nd gen which may or may not include more RAM - after all, it took the iPhone to the 3GS before this - at which time I believe tweaks and enhancements reached their limits to provide the performance required to run the OS as well as more sophisticated apps.
Where does Force Quit fit into this - can you do it on the iPad?
You can force quit, but the lack of ram doesn't slow down the iPad in any way, but rather cause a bit of inconvenience. No slowdowns like on PCs, thankfully.
Also, restarting definitely made a big difference. Still not perfect the way it appears to be on Apple's guided tour, but not nearly as bad as before.