The iPad will do 90% of what most people have a laptop for. Power users will not be able to deal without a full keyboard or a full OS.
As for the next generation iPad, I would suspect that it will be out around next spring or summer. The big software update due next fall may be more significant than the actual hardware update. The hardware update will possibly be a little faster processor, some added memory and possibly a few surprises like a camera and additional ports. The third generation may be the signiicant one where they fully integrate 4G systems. Of course, anyone who says they know what Apple is going to do, is being a fool. That is part of being an Apple fan. Guessing what is next is as much fun as some get from the NCAA tourney.