What a huge waste of time:
One of the main things Apple has going for them is the Apple Mystique, a superstition about their marketing genius. For this product they wasted all their free publicity and brought out an oversized iPhone without the camera or phone–an e-reader that links directly to an overpriced marketplace for the some of the biggest old-media losers. When a half dozen other manufacturers bring out cheaper, more versatile products later this year, the iPad will sink into obscurity as another Apple also-ran.
The only thing that might save the bottom line is if Apple sells them at cost to every public school in the US and negotiates deals with the textbook publishers to put DRM-locked e-textbooks on them.