I am in that camp where you could use the 400-500 dollars to buy a pretty decent laptop and leave the ease of access to a smartphone. Except for its sleek interface and easier handling, the ipad has inferior features to what you can get with a laptop in that price range.
When the Ipad goes down to 200-300, and it will one day, then it'll be worth it imo.
Apple products especially the ipad doesnt go down in price. They release a new one and sell out of the old models. If you find them at a discounted price it is a store taking a loss because you cant get the new models until you sell out of the old ones. And unless you need to create and/or edit alot of documents get an ipad... they are the bees knees!
I am a school teacher and I love my iPad. I cannot wait to get the ipad3. Retina display, thinner and a better camera. iPad is the greatest invention.
iPad 3 cums out in November.