On the inside, Apple has given us a surprise. The device uses an Apple-designed chip it is calling the "A4," which runs at 1GHz and is used for managing everything: Processing, graphics, and I/O. The system has between 16 and 64GB of RAM, contains Bluetooth and EDR wireless connectivity, has a speaker, and microphone, and also contains Apple's accelerometers, ambient light sensors, and digital compass with assisted GPS technologies. There is a 30-pin connector for attaching the device to computers, but it also uses Bluetooth and Enhanced Data Rate technologies for fast wireless access up to 3Mbps. The device has a powerful battery that gives up to 10 hours of usage, and nearly a month of standby time.
Apple has not omitted the option for 3G connectivity. The system contains 802.11a/b/g/n Wi-fi options, but also can directly tap into UMTS/HSDPA and GSM/EDGE 3G wireless networks, and come unlocked and without any contract so if your wireless carrier uses a GSM micro SIM, it should "just work."
What it doesn't have: a phone, a camera or GPS.
What it does have: an e-book reader.
I think for gamers, people who spend a lot of time commuting on public transit, and Apple lovers, this will be big. I can't think of why I would want it over a netwook that does real computing as well as provides online access, access to music and photos, etc. Sure, 1.5 pounds is nice, but for the extra pound, the netbook gives you a lot more.
As to the Kindle vs. the iPad, I think having the color option (I assume) the iPad will offer would be nice, but again, not enough to switch.
On the other hand, looking at the iPad makes me wish I still had a Mac. Since I already have an iPhone and iPod and find them redundant, I think the iPad would be more of the same. If I were going to buy another Apple product, I would replace my stolen Macbook Pro, and skip the iPad.