It's for sketching. Diagrams, wireframes, or just a squirrel in the park. Give me a simple sketching program - think Painter Light. Let it synch to a repository on my desktop. Let me use the tablet as an actual tablet via bluetooth when I'm actually at my desk.
I would probably pay bank for that.
It's called a Pogo Sketch
I plan to use my iPad for doodling and whatnot of a night time in bed, aswell as reading and general media consumption - its really my "bed time" screen device.
EDIT - link
If the iPad had digital ink and the ability to digitally markup documents with ink it would be the killer educational device.
I block print, and carry a notebook everywhere. So, having something that I can use in my "accustomed fashion" that would also be searchable via handwriting recognition would be a big win.
I also work in an industry where drawing geometric shapes are commonplace (chemical modeling). Yeah, you can do it with your finger, but sometimes the detail work is important and one's finger is a bit broad. Thus, working with a fine point/stylus would be an application win.
Is this a big enough market segment to matter? Not at this instant, because they're selling every one they make with NO difficulty. Would be nice to see something once the sales ramp down a bit, though.
The thing is that typing works fine for text. But as soon as you want to draw a diagram or a formula or whatever, you're way better off freehand.
(The "in Korea, handwriting interfaces are for old people" meme is struggling to escape, but I need to keep telling myself this isn't slashdot. People are actually intelligent here)