I agree with Dovey. There are people out there, no matter what age they are, who have absolutely no idea what they are doing with computers, and yes, in the Western World. I've come across people my age who have absolutely no idea what they're doing with a computer. Sure, they can pick up the mouse and point and click at things, but basic tasks such as sending an email and all of that, they couldn't grasp.
I think the iPad, as it is, without multitasking, could be thrown at say... my parent's generation. I've watched my mum struggle with tech for years. She's watched me work on something and do things for her on the computer and I'm doing five or six things at once and flicking through them, she doesn't cope with it. She prefers to do one thing at a time, and I know a lot of other people in her generation (40-60years old) who need to think about things one thing at a time, not multitask. I can see it sitting really well with that age group (in it's current state). I'm not saying everyone in that age group has absolutely no idea whatsoever, I'm just saying that for a fair few people I know, who would only ever buy a computer so they can get setup with email and basic internetting, that it'd be an option for them.
Also, I think it's just about the perfect size. I mean, for me personally I couldn't ever ever use it as a primary computing or internet device by any means, but I would use it and most likely love it. I think I'll have to go and check it out in a store when it comes out.