I use them for real work. Taking notes (the split windows view is awesome for this - notes app in one window and the book in the other), reading, creating illustrations and other artwork, etc. I don't think they are a toy at all. I have a desktop computer and a couple of high end laptops, but I still reach for the ipad most often.
I have a very different take. I am much faster with a keyboard and keyboard shortcuts, and I hate glossy screens. Every time I use an Ipad this brings my productivity down compared to having an actual laptop. Honestly I cannot say I have seen people do real work on an Ipad. Just browsing and very short messages.
