Steve Jobs claims it'll compete with netbooks.
The problem is that with no Flash support, no USB, no physical keyboard (there's an add on, but it's designed more for desktop use) and a high retail price, chances are that it won't :/
For around the same price, I could buy a Samsung N110 netbook with a 250GiB HDD, Windows 7, a 10in screen, a camera, bluetooth and USB ports... Sure, it won't look so trendy, but I don't care as it's got more stuff as standard and my Samsung laptop has fared well over the years, so I trust them.
You even have to buy a converter to hook a digital camera up to the iPad, which is just Apple making more money off of idiots  
I say they look more like german/caveman then asians.
The Germans are coming to beat you with clubs and spears!
Hundley: Damnit kid, get off my lawn!
Faust: NOT UNTIL YOU GIVE MY MY PANTS BACK HUNDLEY!