It does everything apart from flash. So it can't see flash content, like news clips on BBC website. There is a YouTube app though so can watch YouTube stuff.
So loads of Internet browsing, catch up tv, stores iTunes content, has a kindle app for reading, emails, all the apple apps. Catch up tv. You can download apps for word processing, spreadsheets, etc. Garage band!
Photo storage, playing games, calendar function, download movies to rent on iTunes..
I've got a wifi only so no monthly cost. Just initial purchase price. I use my android phone as a wifi hotspot when out and about. If you get a 3G one then you either pay a monthly fee of about £10 or I think some people have worked out how to cut down a pay as you go sim down to to size so it fits and then use that as and when. Or if you get the wifi only one you can buy a mifi from three for £70 and then buy data bundles as and when you need them. You can then connect your iPad to the mifi wirelessly and it will use the wifi from it.
It's a lovely toy. I use mine All the time for things I can do other ways but are quicker or better on the iPad. I am using it now in bed, have been reading my book on it before that. Also have subscription to the times, And download magazines like good food on it.
Costs about £500 depending on the model, plus what viva said if you buy a dAta package, or you can get one with a mo they contract where the iPad is free I think.
Sorry to hijack this thread but I love my ASUS EEE PC 901. It does everything the Ipad can do and more, for a fraction of the cost (around £100 or less if you find one on Ebay) and at relatively similar dimensions, plus a proper keyboard and a webcam for making video calls on skype. And it does flash animation and videos too, and the ability to read ebooks. Only thing is it weighs 1 kg whereas an Ipad weighs nearly 700g to 750g I think...