Now I'll grant you that the iPad does look better than a netbook, but that's about the only advantage I can think of.
Price? About the same.
Size & weight? About the same. Netbooks are harder to break, though, as the clamshell design protects the screen. Mine takes horrendous abuse without problems. Never bothered with a case or gentle treatment - just chuck it in whatever bag is at hand & go.
Screen resolution? About the same.
Typing? Massive win for netbooks. Their keyboards may not be as good as full notebooks, but they're much better than a touch screen.
Doing anything resembling real work? Again, massive win for netbooks. Whether you run Linux, Windows or Hacked OSX on them, they have all the applications of the real computer of your choice. The Atom's a pretty powerful chip for the price and as long as you get enough RAM (1-2G), you can do anything you really need. I've run some pretty heavyweight mathematical simulations on mine. Slower than a real computer, to be sure, but fast enough for when you're on the move.
Entertainment? You can run full iTunes on a netbook, plus you can use the BBC iPlayer properly, hulu, etc. Again, a win for the netbook. They can even play some undemanding games. I've run WOW adequately on a non-ion netbook, so with ion it would be excellent.
I'd happily pay for a mac netbook, but the tablet just seems ... well ... useless. Too big to put in your pocket, not enough grunt to do anything useful. Ultimately, my problem with the iPad is just what the OP originally alluded to. It's as big as a proper computer, but not as useful.