There seems to be a lot of confusion amongst the tech press and bloggers as to where the iPad fits into Apple's product lineup.
Say you have $350 to buy a new computer. At that price you're looking for something to web browse, do your taxes and process your photographs.
Your options would normally be a Chrome or Windows device but you can also buy an iPad which has a better display and battery than any of the competing machines, access to the most varied app marketplace on the planet and better software support.
If you wanted to buy a Macbook the lowest price is one thousand dollars.
There is nothing wrong with the iPad; it represents Apple's sub-$1000 range of computers. You probably don't use one because you have a Macbook Pro (in which case you probably never will) but for people on tight incomes (ie most of us) the iPad represents an affordable way to get a really great computer.