My Mom used the iPad my Dad bought in a pretty sparring manner, mostly to look at Flickr and MLB (listening to games not on MLB Package on cable). She didn't like reading on it.
My brother and I got her an Apple TV for Xmas and so far that is going very well. Netflix is a hit (after we convinced her she wasn't paying for each show) and so is Flickr to see the grandchild on the big tv. It also helps all the video Dad has from iTunes.