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The iPad will be a suitable device for
a. casual internet users with simple needs such as email, browsing, ebooks, listening to music,etc.
b. More advanced users who get their work done on laptops, workstations,etc. These people are very well aware of the iPad's limitations and the device will serve as their secondary device to do basic tasks and read books, newspapers,etc. while lounging on the couch. It's not an expensive gadget, so it won't be a big deal to pick one up a secondary (or 3rd, 4th) device.
Hate it or love it, it will probably be a success. (as most of Apple's products launched in the past few years)
Apple excels at hardware/software design and usability and that is a major factor for many buyers.
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