Add ports and a keyboard and it will be perfect! Make it a clamshell style so fingerprints wont get on the screen, and protect it when your not using it.
So... Eliminate its differentiating characteristics and turn it into something that resembles the competing netbooks and sub <$500 notebooks whose lunch Apple is devouring, according to Best Buy's figures?
Tactile feedback is pretty important to some people. I haven't tried an iPad yet but when it comes to emails on the iPhone, I would sometimes kill for the ability to just type the way I could on a real keyboard. An iPad with a keyboard hookup is still an iPad.