
of kids want an iPad
The Nielsen Company presented a cadre of individuals with a list of nice, shiny gadgets and let them cross off anything and everything they'd like to buy in the next six months, and 31 percent of kids 6-12 picked the iPad as one of them.

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Jeez, for that price I could take my pick of any number of PDAs, a hack-able PSP, or even an iPod Touch.
Well, yes. And for the price of a good Lego kit you could buy a nice pre-built scale model of an airplane.
They're different products for different people. If you want a PDA, buy a PDA. Some people just like hacking things together as a hobby.