First, the LED screen will not be there for long. Color e-ink with decent (enough) frame rates for watching video is on its way — or at least so I am told. Apple knows that this thing isn’t perfect, but I suspect they also saw that the technology in this category was lagging behind market interest and demand. iPad 1.0 is a placeholder in some ways.
Second, if I was 20 years younger, I would stop what I am doing now and immediately immerse myself in everything it took to develop native apps for this and the other devices that are going to copy it. This is the computing device that most people have wanted for a very long time. For better or worse, most folks are consumers, not producers. The IT revolution — Tim Berners-Lee core concept — was a blurring of that distinction. We have seen a lot of movement in that direction, and there are certainly a lot more people producing content than there was twenty years ago, but I think we are also seeing a flattening of the growth curve and a kind of stabilizing of who is going to do what for the time being. The iPad addresses that flattened curve very, very well.