At this point I have become a full convert into the idea of a tablet, but I am spoiled by the iphone 4 screen. I'll wait until apple (or a competitor) comes out with a 10" screen with 300dpi or better. Ipad 2 looks too pixelly to me.
I dunno about other people, but basically it's a couch computer. Something you look at while watching TV. I know this sounds pathetic but I don't know anyone my age who doesn't regularly look at the internet while watching TV at home. It's also a good way to let guests use a computer without letting them access your personal (ahem porncache) computer