That seems like a pretty decent price -- new iPad 2s are $399 I think, and that's for a 16 gb model.
I'm realy enjoying mine so far -- it's my new go-to toy for dicking around on, and it's surprising how many little uses I've found for it. Totally usable as a pseudo-laptop for web browsing, simple doc editing, etc. (It works with google docs for doc and spreadsheet files.) Plus, there are lots of pretty darn good apps out there so you could board game a bit!
I also use it a lot as a PDF reader. I've assembled quite the collection of game books PDFs over the years and it's nice to have a single portable repository for them. I dont know if you do the e-reader thing, but its also nice for that. I downloaded the kindle app and it syncs up all my books. Just think, you could tote around all three magic realm manuals without a backpack!
SPEAKING OF WHICH, Matt and I have been talking about putting tower a magic realm day sometime in late April. Interested?
Anyway, iPads are definitely toys but they're fun and functional ones. If you think you want a tablet I say go for it.