One thing to keep in mind is that the iPad's larger screen size means apps and the OS need to use more RAM to store and manipulate those additional pixels (about 5x as many of them), and with all the Quartz compositing, Core Animation layers, etc. many of those pixels need to be stored multiple times in multiple buffers. The iPad absolutely should have had 512 MB, 256 is barely adequate to do what it does now, and it is going to cripple it for future OS updates and apps. But that's what being an early adopter means, I expected this generation of iPad to be short-lived, which is why I got the cheapest model. Having said that, I have not noticed any sluggishness or slowdowns on mine, just a lack of cacheing for Safari sites (which they might be able to improve on somewhat in software).