gdgt

I have both a smartphone (Galaxy S) and iPad, and yes, I use both. There are things that (obviously) you'd use the phone for. Txt, talk, quick online info, camera... but think about the amount of time spen on your phone browsing the web, checking email, reading articles on Engadget. It's all of those things that make the iPad worth it. They feel so much better on an iPad.

As for the two data contracts, first, the ipad is contract free, and I owned mine for several months before I ever bought 3G data for it. I almost always had wifi, or used my galaxy S as a hotspot. I just reciently had a need to buy some 3G, so I got the 2GB for $25, which isn't a bad price. The great thing is that it's a' la carte, you just buy it when you want it, right from the device itself. Don't need it? Don't buy it.

For me, it fits nicely between using my laptop (for work or software development), and my phone (for the stuff mentioned above). It's my go-to for consuming media, news, sports, blogs, games, etc.

Hope this helps!