Hardware:
The iPad 2 is slim yet solid, and the Smart Cover doesn't compromise the thinness or design like the 1st generation iPad's first-party case did. The speaker grill is unfortunately placed, and the front facing camera is placed off-centered if you want to use FaceTime in landscape. The rear facing camera isn't great, but that's what my 4S / DSLR are for right?

Software:
iOS 5 brought lots of improvements to iPad that I'm sure you're already aware of. The browser is great, multitouch gestures are useful, and iCloud is super simple. I do wish, however, that there was better notification syncing between devices. Apple has done a good job getting developers to write for iPad; unlike the complete lack of tablet optimized apps for Honeycomb / ICS for tablets.

Wrap-Up:
There are plenty of viable competitors to the iPad now (I'm looking at you Transformer Prime), but without apps, Android tablets are just shiny pieces of metal and glass. Sure, they have better cameras and faster processors, but they simply cannot beat the App Store's quality and quantity of apps.