I am with 01001010 on this one. Apple does make pretty good pieces of equipment, which is why it comes at a price. You don't get something for nothing, that is just the way it is.
All around, having used the ipad for several things, including the VPN function to use with our citrix servers at work, I find it is a very handy tool, and a fun toy. However, this is all assuming that you can get around the fact that it is apple, and apparently no one wants to be "that guy" that goes out and pays $500 for a tablet that does what it says it does... simply because it is made by APPLE!?
As I said before, the video playback is fine, although there will always be those that nitpick. The web surfing is adequate for normal usage, and knowing there is a lack of flash, you can't really expect it to do everything. As far as everything else, it either does acceptably or better.
My final point is if you have the money for it, GO FOR IT. The ipad (despite anti-fanboy comments) is a fun little toy, and WILL do what you are looking for.
And no, I am in no way an apple fanboy. The only apple product I currently own myself is a 4GB ipod nano that I never use. My experiences all come from work and school.