Hmm, I just don't see the iPad solving something that Netbooks or tablet PCs already couldn't. The iPhone was revolutionary, and it was clear at the first sight that it would be. The iPad, I don't know.
IMHO, the technology just isn't there yet (but it soon will be) that solves the size problem: Bigger than letter size to read comfortably from, and smaller than a postcard to carry it around.
And just using the iPhone OS is a very weird decision.
rumborak