Yeah, I believe the slower update cycle too. I have two iPad 1's and an iPad 2, and while I'm definitely due for an upgrade, it doesn't get the same type of price reduction as a phone, so it'll just have to happen in its own time.

As for use - they are constantly getting used for games, movies, books, and web browsing. That is what they are good at. You want a clear use case - its that. My computer stays on the desk most of the time.