Holy crap. Just bought my iPad. The apple store is an absolute zoo. I had to wait in a line that was about 5 people long, but they were pretty quick in dealing with me.
They had 2 tables of them sitting out, but nobody was around so we gave it a spin. Very very slick. Resolution is top notch, the camera took some killer pictures and the video was extremely nice. I would like to see the video on a big screen, but I would say there's be no problem using it as a family camera.
One thing that shocked me was how crisp the HD video was (videos you load on I mean). They had a music video to sample and it was brilliant.
Here's a pic of the line. One thing you can't notice is that the line at the back snakes about 6 times behind itself.
