Couldn't agree more. Tablets should definitely become "the new laptops," as far as I'm concerned, at least as half of their mission in life. The challenge is to do this in a device with long battery life and which is perceived as "simpler than PCs."
It will be interesting to see what Apple does with future generations of iPads to rejuvenate that segment. Anything that improves the balance of "productivity" vs "entertainment" usage would be a big plus.
This is quite apparent from the sales for the Tablets that this sagment is created and still largely pushed by iPad. As this sagments is mostly for entertainment with little productivity so maybe the marget is getting saturated.