For Christmas I got a neat gift, an IPad. I feel so guilty in that its sort of expensive for a person who really just looks at Facebook and email on the computer, and I do have a "big" computer as well. What the heck do you do with yours? Im going to return it, if I dont get more out of it. I allready have a video camera and (semi smart) cellphone. I should say the display/screen is really vibrant and nice.
Got one last year and like you, didn't know what to do with it. A year later, I hardly use my laptop any more. We keep "the toy" on the kitchen table for immediate internet gratification, recipes, music. We take silly pictures (dropbox is awesome) and of course, there are games. I love the apps that pull news from all different sources. And, everybody has them at work and brings them to meetings.
I really think the size it what I like the most. You can do so much with something so small, and I can stick the thing in my purse. Yes, I have an iPhone too that can do all of that, but I'm blind as a bat and that tiny screen is really hard to read on for very long, and the maps are ok for a quick check, but not so great for technical directions and route-finding (for me anyway).
I use mine for games, music and internet when I'm not at the computer. I kind of hate how iTunes nickle and dimes you for everything. Many of the "free" games are only free for one level of play and then you have to buy the game. You can get magazine subscriptions, I haven't used that yet but I have bought several books. I'm not sure I love reading on an iPaD as much as a book but it's great for travel. I have only downloaded one movie it took so long to download it was hardly worth it (I have slow dial up internet).
I use it exclusively for Internet now, love that I can take it anywhere, I stream Netflix daily, I use it as my grocery list, games, etc.
I take it to meetings to take notes.
I love mine. It's a permanent fixture.