That being said, it is shockingly unimaginative given how Apple likes to position itself, and given how much time they've spent developing it. Once you cut through Steven Jobs' extensive hyperbole, there isn't much there that's new other than the size.
And it's the size that's really got me puzzled.... It's to big to carried around by it's own in a pocket like an iPhone requiring always have a man bag to use it. Are women going to really want to lug something that big around?
If it's bigger than a Kindle is anyone really going trying to use it to read on the Metro and I most certainly wouldn't want to be sitting at my desk using it. With all the firewall monitoring going on these day my iPhone is my primarily method of reading email, surfing these days.
I could see myself getting excited for something in between an iPhone and the iPad, that allows me to choose who my data provider is, can stream 8Tracks.com mixes in the background, while I surf the web or check out my twitter feed.
Hopefully, enough of the people who will want it just because it's the "hottest" thing since the iPhone will buy it and allow Apple to recover costs and then work on rev 3 versions of the iPad.