Though this type of scenario never played out for the iPod, I strongly believe that's the most comparative product when looking at what the iPad is doing and will do to the market. The iPhone has been somewhat of a benchmark and has sold well, but the iPod is has dominated the portable music device like nothing else before (or after) it. I think we'll see the iPad quickly take over from the Kindle and other products in the reader category to start. It's on a path to make iPhone adoption look slow.
What I'm most pleased to see if how well it's been received by developers, with a lot of interesting titles already available prior to the product's release.
Tom, definitely update the thread as soon as and as often a you can with your observations. Since just recently coming to the conclusion this would be a good device for my Mom, it may be prudent to take the same road you are, use it before handing it over.