I saw the specs and features today of the iPad 2. I think they are some very good updates, I’m not sure if I myself am going to upgrade (at least this year). Based on my CURRENT iPad usage, there is really nothing different that I could justify doing on an updated device. My core uses are PIM, documents, web surfing, iTunes, and some games. (That’s not to say my usage would not change with new features though).
Cost is the other factor for me personally. I have a lot of money invested in my machine. Selling it on craigslist does not seem to be an option right now. Apple dropped the prices by $100 on all iPad 1’s today. They are even cheaper if you buy a refurb. You can by a 16GB Refurb from Apple directly for $349.00.