I find that we use the ipad less of a laptop replacement, and simply a device on its own. If you compare it to most of the netbooks, sure, chances are it won't compare for web surfing. However, the gaming we have used it for has been perfectly fine, we have had no choppy issues. The video playback is good, but as foothead said, the ratio may affect you. But, to me, it is kind of like the widescreen vs. fullscreen argument, it doesnt bother me either way, but some people have problems with one or the other.
The internet browsing is great, however certain pages do not display correctly, as with most mobile devices. However, most will display just fine.