I've been thinking about this for awhile. I think the target is people who use a laptop for web browsing and email most of the time. Rarely they'll need to use it to create a document or presentation. If you ask them what web browser they use - they probably don't know or care. If you ask them what email client they use - they look back at you with confusion. In almost all circumstances these users don't need a proper laptop. A keyboard dock and iPad works just as well.

My parents fit perfectly into this segment of users. They use their computers often and are content as long as everything works. They care about ease of use and consistency across applications. Apple, with their closed system, can provide that.

The ironic part from my observations is if a website doesn't work they blame the website. Apple won't be blamed by users for not allowing flash. We saw the same thing with Microsoft and IE6.

I think power users and developers will have another few years before they are happy with any Apple tablet offerings. For me I'd need a higher res screen and OS X. Or equivalent improvements to allow development. I think developers were hoping for such an improvement with iPad v1 - but alas we'll have to wait.