It's not a necessity, but once you start using the iPad, you start finding ways to use it and don't want to live without it. I've been on two business trips with it (sans laptop), prepared and delivered a keynote lecture to a class of business students, and used it to present an abbreviated portfolio to a client for my side photography business. On vacation, I used it to browse newsreaders, blogs, and the NPR app.
Never really played games much, but I'm hooked on the auto racing games and on the 'pad they are addictive!
Occasionally I will let my kids play games or watch netflix movies ("Ok but it's NOT A TOY!" Ok so it's MY toy) to keep them entertained.
I'm already seeing a lot of future application for the medical field (I'm a hospitalist) and the inherent efficiencies it can offer with the right apps/software.
The most frustrating thing I find about it is the typing (have a bluetooth keyboard, but don't use much), and the fact that I can't attach files to emails with the same facility I do on a desktop or laptop.
Sorry if that's not really talking you out of it.