It kind of makes sense that they'd keep the iPad 2 around for a while, mostly because it uses the same processor as the iPhone 4S which clearly commands more presence and attention in Apple's lineup. Helps keep things neat.
8gb intro iPad 2 seems a little weird to me, although I doubt Apple would want to sell 16/32gb iPad 2s alongside 16/32/64 iPad 3s, and it would theoretically drop the price. Still, I'd probably get on just fine with a $199, 8gb iPad 2. It would stay firmly planted on my music stand and be used almost exclusively as a practice and study aid.
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