The answer depends on what you actually want to do with it.
If you want a web browser, and a crude email program, and stuff like that, the Ipad delivers all that in a very slick package, and the hardware feel and quality are excellent.
The downside of the Ipad is that it is severely functionally crippled by the Apple politburo. The "paradigm" is that each data file is contained solely within each app (with some exceptions, which often don't work properly) and this can give rise to some really irritating situations. Another little irritation is that the 3G version has SMS functionality blocked by Apple - unless you jailbreak it.
One has to appreciate that it is basically a media player / web browser and such, not a computer.
I got an Ipad initially for use as a browser for doing a JAA IR online question bank, and for that it was brilliant. It is also a good document reader.
I don't think the cost of apps is an issue; most of them are very cheap. But because most IOS apps are severely crippled functionally, one neds up installing several apps which are quite similar, just to get several features one wants.