It has been a white elephant from day 1. I got stuck with it mainly because my Dad is an Apple fanboy. In contrast, the laptop I spent $300 on at around the same time has been used every day since I got it.
It isn't just the tablet form factor. Using the iPad feels like I'm diddling around with someone else's locked-down, crippled, coin-operated Internet kiosk, rather than working with my own computer.
If you stuck it in a laptop shell, it would still feel like someone else's computer. Mostly, that's because of the walled garden OS. Using that iPad is one of the major reasons why I prefer Android devices now, even though they also have some issues. But even the iOS/Android phones and tablets in the house still feel like toys with just the touchscreen input. They feel even more toylike than a Nintendo DS or WiiU touchscreen controller, because at least those devices have some actual, pushable, tactile buttons on them.
That's the problem I have with tablets. The interface stinks. I like buttons that I can push with just my fingers, rather than my fingers and my eyes, with my eyes getting frustrated because my fingers are opaque.
Put a multi-touch sensor on the back of the device, and put a tactile "display" over it--like a touchscreen for blind people. Bonus points if you can get a "click" feel out of it when you press. Then I might reconsider giving up mouse and keyboard.