That's pretty much where I am on this. I really like the concept behind the iPad, but it seems to just not really... fit.
Granted, if you're going to be lugging around a hardback to read, then it's actually smaller than that so I don't know if my perception is skewed by the fact that I'd prefer something that could multitask. For instance, I often listen to music while reading. That doesn't seem to be possible.
Well, you can; the iPod app will continue running while you do other stuff. But other media apps, like AOL radio, Pandora, will not. I understand why they restricted multi-tasking to a few core apps on the iPhone. To maintain the integrity of its core function (a phone) and maintain battery life and responsiveness. For the most part, I haven't really missed being able to multi-task on the phone as the screen size really limits that usefulness and app switching is so quick. Still, I would like to be able to listen to Rush through AOL radio while I'm on the go away from a radio, and still do other things.
These issues should not be as great a concern on the iPad however.
I'm sure Steve and Apple are reading all the blogs. Who knows, the version we saw, may not be the one that ships (at least software wise), or a SW upgrade will be out shortly thereafter. The HW design is probably locked and in production.
I would have liked to have seen at least a MicroSD slot, maybe a mini-USB, and since I will still carry the my iPhone with me; the ability to tether to my iPhone for 3G.