What would it take for the iPad to be a full-fledged laptop replacement?

I believe laptops are a dying technology. Ever since I bought my iPad, I cannot see a logical reason for ever purchasing a laptop again. I do own one that I use exclusively for gaming, which is the only thing it's good for.

A friend of mine recently asked advice on purchasing a laptop and I advised he simply purchase an iPad, and for his heavy computing needs, which are music downloading and some gaming, he build a desktop to keep at home. Who honestly needs to download music or play PC games on the go anyways? Portable computing really only involves web-browsing, messaging, and word processing mostly.

How close is the iPad to killing off the laptop? What features would it need to completely win over laptop buyers? The first things that come to mind would be Microsoft Office, storage space, and a better typing experience for heavy word processing. All of which have been pretty much solved. Office is supposedly due to come to iOS next year, storage space for both documents and music can be relegated to the cloud. Google music allows internet streaming of your music. Documents can be sent to the cloud. More storage space in iCloud isn't that expensive when you are saving hundreds by not having a laptop.

My opinion is: the iPad, witch certain accessories and cloud-based services, can already replace a laptop. What do you guys think? Am I not thinking of something?