I see it as a step towards hurting Dell, who makes a portion of their money selling laptops and desktops to people who really don't need them, like my parents, grandparents, other non-technical people. It's also a step towards hurting the "PC repair" industry that charges these poor folks $150 to install and run freeware antivirus tools and "double your memory".
I think the lack of Flash support is going to hurt it the most, as the target market I'm describing are people who tend to use Flash a lot (think Facebook games and other online games.)
The iPad is aimed at that market of people - the people who use the Internet as another vehicle for entertainment. I've seen what the iPhone has done for average people, and I think this is Apple taking that a step further.
I guess I wouldn't say it's "revolutionary" but then again, I said that about the iPhone. ("it's just another phone, who cares?") And remember, it was pretty 'meh' before the app store.
I could be wrong, but I think it has the potential to be pretty neat for the average person. We need a revolution in that space.