agreed, you can't classify it a computer because you're not free to install whatever you want on it, can't download things onto it and most importantly can't upgrade it.
Even netbooks these days can have hard drives etc upgraded. Definitely the market filler between the iphone and a netbook, which I never thought existed, as the netbook fills the void between a phone and a laptop.
The iPad is the BMW X3 of the tech world... its made by a trendy company, but it serves no specific purpose, just does everything half arsedly (from a car buff point of view). The problem is that even though anyone who's tech savvy will find it restricting, pleb users will love it to bits, cos they won't know any better. It'll do "internets" well, so as long as it facebooks, emails, browses websites, its fine. It's mainstream and makes a great accessory/status symbol. Just like the soccer mums that buy X3's and think its the bees knees.