Actually from what i read/heard/seen about it it works really nicely. Its almost a laptop, and very handy.
Only reason why Steve Jobs came out with it is so he can test out the marketing value and feedback of what people think.
I personally think it WILL become one of the best technologies within time. And yes they are already working on the second generation.
Eventually this technology will replace older technologies. One thing that most likely will happen is that it will be used in hospitals and such (The White House has declared they are iPad ready.
Well that's my :twocents: