I'm using my iPad more than I thought I would and, yes, my 3 year old Dell PC Desktop is getting minimal use. I still do spreadsheets, taxes, long docs, most online shopping/banking etc on the desktop but almost all my internet browsing, TOTV, ereading, music, Facebook, and apps are on the ipad.
I had an ipad 1 for about 18 months and just got the new ipad. Faster, better screen res, better camera ... huge upgrade over the 1, maybe not as much so over version 2.
Still, for me, the ipad could not be a total replacement for a full size desktop (or laptop). It is great for consuming content, not so easy to create content.
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Maryland (DC Suburbs) - first 51 years 
The Villages - next 51 years
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