I'm not sure you/we are typical, though. Do non-tech folks really spend $500 on a device to read books and play table games? If you were into reading, at least, I'd imagine you'd be picking up a considerably cheaper Kindle instead.

Well older people like a larger screen. The iPad is nice to provide your family with a Skype/Photo station, a easy to use browser and some small goodies ( whatever apps, or books )

Around me (lots of expats with kids) the iPad is a killer to give your family back home instant connectivity in as much maintenance free and foolproof package as you can get. ( no cable, no malware, no driver, understood and supported by your internet provider, always on, minimal learning curve )

My point of view is the opposite, how is it useful at all for tech people. I never found any business case where either laptop, desktop or smartphone was not more convenient (the exception is reading, but I'm part of that minority that prefer to read on their smartphone)

We got my father an iPad for Christmas, mainly for reading (although he uses it for games now too). He very explicitly didn't want an e-reader. He liked the screen much better and found it easier to read. My mother has a Kobo (and my sister a Kindle) so he knew what those were like. My sister has since bought an iPad Mini. She uses it for a number of things, including yoga videos when she's not at home.

Then what, may I ask, do you think people use their iPads for? Because last I checked they were content consumption devices (books, apps, movies, etc). However a lot of that content doesn't directly translate to the iPhone (e.g. books, movies, and some larger games/app which won't work on smaller screens).

I bought a Kindle Paperwhite recently and realized I enjoy reading on my phone almost as much. Made me kind of want a tablet, actually.

I remember getting a tablet a while ago with a Pixel Qi screen that essentially doubled as an e-reader... wonder where that technology (and the Qualcomm Mirasol etc) all went.

Yes, actually they do - but the thing is, they don't replace them as often as phones.

iPad 2 is still a good device for reading and browsing the internet - hence people just don't throw it in the trash after 2 years and buy a new one like phones.