I can definitely understand your conundrum. To 3G or not to 3G is a difficult question. From my experience with the iPad the device is severely limited without internet access because a lot of apps rely on internet to work, but then again there are a lot of things it can do without internet, it just all depends on how you plan to use it, I guess.
From my standpoint, it's very frustrating when I'm driving around somewhere and I want to access email or the maps app and can't because there's no wifi handy.
On the other hand there's no way in hell I'd consider spending $130 more here in the US for 3G and then $30 a month for the rest of the iPad's life (I don't consider the $15 250MB plan because that would last about 1 day). And the 3G definitely isn't fast enough for streaming video, which is a huge problem for me.
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I am assuming that my bought IPod apps will transfer to the IPad if I sync them through the same computer.
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They all should work but if they haven't been updated for the iPad they will show in the smaller screen they are designed for. You can blow them up with the iPad but the resolution isn't great, especially with reading apps. You can go into iTunes and check the apps from your computer to see if they have been optimized for the iPad yet.
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Lastly how much larger is the viewable screen on the IPad compared to the Sony Reader 505?
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The Sony's screen is 6" diagonally and the iPad's is 9.7".
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1. My main use will be as a portable video player, and videos use a lot of space.
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HarryT, sounds like your going to have fun with it because the iPad as a video player is one of it's best qualities, IMHO, despite it's smaller screen size. My reading time has taken a hit though.