I LOVE my iPad. It's a first gen and finally starting to show it's age, it can be slow with page loading at times. I am holding out for the iPad 3 to upgrade though. I think I'll be a every-other-version guy. There wasn't THAT much in the iPad 2 to convince me to upgrade. Mainly it was just a camera and a thinner device.
I would love to have an iPhone but where I live I only get US Cellular reception which means I'm stuck with Android. USCC gets the lowest end phones out there because they are so small compared to Verizon, AT&T, Sprint, etc. I have an HTC Desire. The battery life is my main complaint with Android. I'm lucky if I get a half of a day with my phone. I don't think US Cellular will ever get the iPhone but if they do I will RUN to the store to get it.
As far as iPad apps, I mainly use:
Pandora Radio (personalized internet radio)
Facebook (for checking Facebook)
Twitter (for checking Twitter feed)
Dropbox (for sharing files and media between devices)
Evernote (for sharing text between devices for quick note taking)
Netflix (for streaming movies)
I can't wait for the iPad 3... I will definitely buy one and sell my iPad 1 to my grandpa who has been wanting one. The iPad 3 hopefully will have many new features.