I think the disconnect here is you're simply seeing the ipad as a pc replacement when the reality is the ipad is a new category that while partially replacing PCs also can partially replaces many other things: books, magazines, newspapers, the radio on your desk, the bedside clock, photo albums, etc.

Someone like Ugh or myself sees you call all of this awesome a "step back" and laughs.

I think you've sold the iPad short too early. Intent or not it will be a huge device for content creation the same way the iphone is a huge device for content creation -- the best camera you have is the one you have with you and as Flickr attests, iPhone 4 is used by millions every day for creation.

Similarly the iPad will be huge and Apple has already recognized this with signature first party apps like GarageBand, iMovie, Pages, Numbers. I have a feeling in years to come a lot of musicians will say that the best keyboard, drum set, guitar, etc that you have is the one you have with you.

Do you like to write sometimes? There's an app for that. When you're not at your desk will the best typewriter be the one you have with you? Probably.

Do you like to draw and doodle sometimes? There's an app for that. When you're not at your desk will the best drawing and painting studio be the one you have with you? Probably.