Is the iPad going to replace the iPhone, or is it a netbook replacer?
Neither, really. Unless you can fit the 9.56-inch by 7.47-inch iPad in your pocket and make telephone calls from it (hint: consider a trenchcoat and Skype), or if you’re willing to give up calling functionality in favor of carrying a dedicated voice-only cell phone, the iPad is not going to replace the iPhone. By the same token, netbooks have quite a few features that the iPad lacks: video cameras for video chat, compatibility with full-fledged Windows PC applications, considerably greater storage capacity, integrated SD card readers, USB ports, and so on. Some people will gladly give up these “extras” in order to gain the iPad’s superior screen, multi-touch interface, and other benefits, but others will go for the lower-priced netbooks instead. If you look at the iPad as “another option that some people will prefer” rather than as a “direct replacement” for existing products, it makes more sense.
