There will be plenty of clowns who buy it. Look at the ebook reader market. This could be one of those with more bells and whistles. 
The e-book market (if we're both talking about Amazon's Kindle) is actually fairing better than I expected.
I don't own one, but I have purchased three as gifts and it is a rather impressive product.  When it was first released, I figured it would flop.  But, it didnt.  It's simple, functional and, especially for those who spend a lot of time on airplanes, very useful when compared to the option of lugging heavy books around.
That said, its focused.  Its a tool for downloading and reading (on a brilliant, non-headache-inducing screen) everything from newspapers to novels.
I'm still trying to figure out what the iPad is supposed to be used for...  So far as I can tell, it's got no focus.  Its just a gadget.