I plunged on both the V1 ipad on release and sold it after a few months. I have literally just now got the V2. Sold the V1 as found that I would reach for my phone if I wanted to do something quickly, or the laptop if it was something more in-depth.
Since selling the V1 I have gone completely paperless with my magazines, relying on Zinio instead (while not perfect its better than a 10 foot high pile of magazines in corner).
The hassle with the laptop (17" macbook) is mainly the heat, and partially the portability. Its hard to sit on the throne balancing a laptop (where is where all good reading is done).
This coupled with the improved media streaming functions plus movie availability which I can incorporate with the Apple TV as well as improvements to dropbox and similar functions for work use makes for a (semi) reliable closed system.
Hence the return to the V2 Ipad. I also looked very closely at the Xoom, but it just wasn't as polished as the Apple system / infrastructure. Im sure very soon it will be in which case Apple will have a fight on its hands, at which time I can sell the Ipad for a 30% loss and buy again if need be.
Regards the "which one" question you are ALWAYS going to wish what ever one you go for did "X" like "Y" does, thats why i'm sure most of us have n+1 bikes (bloody marketing people) but unless you take the plunge you're never going to know. Like the add says ... just bloody do it already!