There’s still a lot of internet chatter about why you’d want a tablet anyway. I think there’s a big space between the laptop and the iphone, and that in particular, the iPad, iPhone and iPod Touch will take over from a lot of purpose built devices that deliver specific high value functionality. Here are a few examples:

1. The daily commute. It’s a simple matter of ergonomics here. I will use the iPad, sold with a cheap data plan when I’m sitting down on the El, rather than the iphone. Because it has a bigger screen, and it’s already connected. I won’t use my laptop, because it doesn’t come with a data plan (or only an expensive one that I won’t buy), and it’s pretty uncomfortable to use in a cramped row of seats. I’ll use it instead of a laptop because the form factor works much better, and because I will have bought the data plan bundled with the iPad.
2. The eBook reader. I’ll use it instead of a Kindle because it will be good enough (or better), and I can do a lot more than read with it. My guess is there will be more people that read on the tablet than who buy a dedicated reader. (Just as there are more people who do photo sharing on facebook than on flickr.)
3. In the Kitchen. If I’m in a situation where a sealed, mess resistant device with a big screen is a big advantage (like a kitchen) then I will use the tablet. I will prefer it to the iPhone because it’s bigger and I can look at it while I’m doing something else, and I will prefer it to a laptop because the keyboard will not get gunked up. There are already devices retailing around $300 to store and retrieve your recipes in the kitchen – an iPad with the right recipe app will run rings around that.
4. Video calls on the go. If it’s always on, like an iphone, and it has video (like my skype video phone) with a front facing camera, then I will replace my skype video phone with it, and I’ll make more video calls. This isn’t in v1, but you can bet that it will be soon, and when it is, it’ll be a killer app for the iPad.
5. In the store. Walking around, showing people more information, more details. The form factor is better than a laptop, and the screen is better than an iPhone. Which would you chose in that situation?
6. On a trade show floor. Very similar to the store situation.
7. Any other place where you would say “hey, let me show you this!” It’s cumbersome with a laptop. You have to say – hey, come here, look at this…
8. In the restaurant. I could see it used in a restaurant, taking orders, or at the reservation desk.
9. For doctor making rounds. In multiple hospitals (as many do.) A doctor or nurse making their rounds is a similar situation – they’ll use their iphone when nothing else is available, but they’ll prefer the tablet when it’s available, because of the larger viewing surface. They’ll prefer it to a laptop most of the time because of the true portability.
10. Online games. There’s a reason games have been a big hit on the iPhone – like the wii, it’s a different gaming platform than a gameboy, and unlike a laptop, it’s truly portable. Add a bigger screen and a faster processor, and you’ve got a killer gaming platform.
11. Social games. A special case of #10: Playing chess or another game on a table with a friend or friends (or against the computer.) One of the issues with sharing a laptop for gaming is that you can’t really do face to face. You’re both looking at the screen, not at each other. A tablet can be laid down between you and used as a gaming console.
12. Online courses and test preparation. You’re doing a lot of reading, and watching a lot of video, and probably answering mostly simple multiple choice questions, rather than writing essays. You can do it on the go, or sitting down at a table. A tablet could be a much more enjoyable way of doing this than a desktop or laptop.
13. Watching movies. You don’t watch movies sitting at a desk – you do it lounging, on a couch, in an armchair, or on the bed. If you’re not watching it on a big screen, this is the way to do it. On the train, in the plane, in the back seat of the car, on the couch, on the family room floor.
14. On the job site. Contractors and architects do a lot of site inspections/checklists in the field where an ipad would be great – my guess there are a lot of other applications for them as well. Just as in a medical situation, concerns about durability can be addressed through functional cases.
15. Turn by turn navigation in the car. The bigger screen is a natural for this. A purpose built case with gps is probably not that far behind.
Got any other situations that the iPad is suited for? We’d love to hear about them.

16. The iPad can potentially replace a portable DVD player for your car where in with an appropriate mounting accessory, it mite just be possible to mount the iPad in your car to watch streaming video content(using 3G) or stored content.
Nice read and your list covers most of the possible usage scenarios.However, There are apprehensions that iPad, at least in the short term, might not prove to be as popular as an iPhone as there are alternatives available for some functions it perform.
Abhishek