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From what I've seen, I think people will be much more likely to use iPads as netbook replacements or honkin' big video players. Some people will certainly read on them, and if that's your preference, that's great. I just see it as overkill for reading, given its size and weight.
I saw an iPad in the wild a few weeks ago. There was a woman reading something on it. I asked her how she liked her iPad (Generally. I didn't mention reading.) She said she loved it, and she liked reading on it better than on her Kindle. I didn't ask her what Kindle she'd been using, but the thing she mentioned immediately was reading in bed.
I didn't get a great look at it, but my personal observation (which might have been due to viewing angle or the brightness level she had the display on) was that the screen had a bluish cast to it. My other impression was that it would take me about 30 seconds to drop that thing and make it unusable (until I got it fixed/replaced, of course). As thin as it was, it just looked unwieldy to me.
A few weeks before that, I saw a girl watching a video on the iPad. I was much more impressed with that.
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