We got an Ipad for Christmas, thanks for posting this thread, I am still unsure of what it "really" does. I like how intuitive it is, and my 2.5 year old teaches me stuff about it. He can turn it on, find netflix, and fire up curious George by himself.
Favorite app so far: Fruit Ninja
Favorite accessory: Apple TV... man I love that thing. With Netflix it is unstopable.