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I wouldn't write off iPads altogether. Check the refurbished section on Apple's site. You can get some great deals there. You might also check ebay and other classified sites to see if you can pick up an iPad for less money.
I suggest visiting an Apple store and checking out the iPad mini. I have a full-size iPad, but if I were buying one now I would definitely consider the mini. It seems to have the perfect blend of screen size and light weight.