iPad - Who will buy this device?

For over a year, pundits on the internet have speculated that Apple was developing a touch screen tablet.

On Thursday, Steve Jobs confirmed these rumours when he announced the Apple iPad. The Apple iPad is a 9.7" touch screen tablet which runs an upgraded version of the iPhone software. 

My initial reaction when I saw the Apple  iPad was confusion. What functionality does this device offer over and above the Apple iPhone? And what market is Apple aiming this device at?

The issues I see with the device are:

• It is too large to be a truly portable device. You cannot carry this in your pocket as you would an iPhone or other mobile device, however it has limited functionality compared to a netbook which is much the same size when closed.
• It is not aimed at replacing the iPhone as it does not make calls. The 3G cellular connection is purely for data purposes. 
• It is only possible to load Apple App Store applications onto the device. 

I wont be buying an iPad. I think that the size and limitations make it less capable than the iPhone. 

I wont be the only one not buying, many technology writers have expressed similar dissatisfaction with the iPad. It seems to be a product without a distinct market.

For further information:

CNET - Apple iPad: What you need to know.
SMH - iPad Review
SMH - 12 Features Apple iPad Lacks
SMH - Jury Out as iPad touches down