Its interesting you should compare it to that, I was watching the original iPod keynote just a couple of days ago. It was clear from day 1 that this product was going to beat its competition. Several times during the speech, Jobs outlined exactly where this product was different and offered something new and something that was required in the marketplace. Its on youtube - you should see it!
http://www.youtube.com/watch?v=kN0SVBCJqLs
Now for your point about the internet. Jobs said that the iPad has to be an excellent inbetween product between the iPhone and the MBP, otherwise it loses its value. Absolutely true. The problem is that they havent delivered this. What they've created is a product that isnt as portable as an iPhone and isnt as versatile and powerful as a MBP. So your internet web page viewing is a perfect example of a problem that it fails to solve. You dont carry your iPad around with you, you probably leave it on the same table as your MBP - so is it really worth the $500 for a product that doesnt do anything new and the new aspect of it (a tablet) isnt really that useful given its size...