[citation][nom]Miharu[/nom]iPad2 could be flashy - I think it's mostly useless for a price, it's a flashy digital frame..[/citation] (Sorry, forgot to add this part)
A photoframe? First of all, most photoframes are pretty crappy low-res devices... with an 8" screen with 800x600 res, most look like crap compared to my 4" Samsung... which has better color and contrast.
Lets compare a $500 iPad2 to a $200 Kodak PhotoFrame [KPF] (not the usual $50~80 crap).
Screen: 10.4" KPF is 800x600, lower than iPad's 9.7" 1024x768.
RAM: iPad = 16GB, KPF = 512mb - it counts on the user adding his own 4~64GB memory card.
Network: iPad = 802.11 ABGN & bluetooth / KPF = WiFi with email attachment function.
Battery life: iPad = 8~10 hours / KPF = AC power (batteries are expensive)
Cameras: iPad = 2 / KPF = none
Things YOU can't do with a Digital Picture Frame: Surf web, run apps (other than an Alarm clock), play games, do work, read documents, take photos and videos, work anywhere, play music, watch movies. So yeah, for $300 extra, you're getting a lot more features.
Mind you, Picture Frame viewers is nice, other than the low-res. I have one - sits on a table and does its thing.
Another reason Apple does well, is the after-market support. Go to any store and look for accessories beyond headphones... and there is 100x more options for people to choose from.