Here is another perspective from a die-hard PC fan. Keep in mind that some products are limited to a certain number of functions and do them well. And for some, that is absolutely perfect for their needs. Rather than looking at the iPad for all its deficiencies, look at what functions it does have, and more importantly, how well it does them. If you took the rationale you have been using, in theory there would absolutely be no need for wrist watches. After all your cel phone gives more accurate time and has way more functions than a watch. But people buy watches all the time. Why? Because it serves a simple function. It tells time and it does it well and in a very quick and simple manner. You don't need to fumble with your phone or pull it out of your pocket. Just look at your wrist and BAM, there's the time. Also, the watch has a certain aesthetic that some people are looking for. Some watches cost thousands of dollars and yet all they can do is tell time. Is it worth it? Well yes, for some.
So that brings me to the iPad and the PC. Will the PC have more functionality? Sure. Is the iPad expensive for what functions you get? Sure. But does the iPad fill a certain need for some like a premium wrist watch? Sure. What it does, it does well. And, it has an aesthetic that some people are looking for and are willing to pay a premium for as well.