So, I need to revise my earlier appraisal. The single-app environment still bothers me. (I want to listen to Pandora and read a book, dammit!)
The flash issue is no longer really an issue. The advent of HTML5 and its widespread acceptance has changed the playing field sigificantly, and I have to grudgingly give apple props for encouraging this move. HTML5 is cleaner, faster, and more universally accessible. So yay for that.
The closed appstore does bug me a bit. I like my open source stuff. I can hope they're going to be more open with this appstore, since it isn't tied as heavily into the phone companies.
The lack of a camera for videochat seems more like a missed opportunity than a serious design flaw. I expect to see it resolved by the 2g iPad.
If you had a group of 5 players with these things, and a good tool for moving data around.... it could really help streamline play for an RPG. Stream music to each player, send IMs instead of paper notes, reveal different bits of maps for different players, give digital handouts for people to examine.
I can even see a neat thing with building mini-videogames in as handouts. You get a note that might be by the killer: you can dust it for fingerprints, inspect it for blood, etc. Success rates and tools available are based on your Investigation skill.