There are alternatives to the Ipad (IMO better as well), except they haven't been marketed as well and isn't made by Apple. For example, the ASUS T91. Take a netbook and give it a tablet screen.
Guess what, it's less then $500, can multitask, has more space, Wi-Fi of course, usb ports, real keyboard, and everything else a netbook can do. Granted, runtime might not be as long(depending on what you do), doesn't play HD, and is twice as thick, but it costs less then the cheapest Ipad and does more.
There are also Mobile Internet Devices as an alternative to the Ipad. These things are already out (the T91 came out 6 months ago), just need some marketing to convince the public that they need another piece of technology controlling their lives.