the Ipad2 will do all of the things that you mention and it certainly would be easier on the eyes when you are reading.
The iPod camera is adequate, front being better than the back, and when connected to a wireless network, anywhere in the world, you can do FaceTime with the folks back home.
If you are not too concerned with using a basic phone, then the iPad2 will suit you well
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My Verizon contract is up in 2 weeks and I am considering getting their Iphone 4. It has lots of features I'm interested in. But primarily I'm interested in the following:
I can sync calendars with my MacBock which would be a godsend as, though I'm retired, I take my mom to many doctor appointments and have a personal life that requires scheduling. (Mobile ME) It has a decent camera. I can do Ichat with several family members. I can carry pics around to share. I can use the Ipod part of it in my car and other places. I can do email. I'm not much of a textter. Supposedly you can read books etc on the small screen. People I know who have one love it.
BUT: I think an Ipad 2 could do all of the above, plus reading would be easier and there would be added video features. With a cover, I think it would barely fit in my purse.
I'm planning 2 trips to foreign countries in the next year or 2 and I understand Verizon's Iphone can't be used outside the USA. I currently have an ENV Touch that has an adequate camera and works well as a phone. I could just keep it and add the Ipad 2 to my arsenal. The Ipad 2 could be easier for travel as it would be light and I probably could dispense with laptop features on vacation.
I know there are also extra charges for the use of both products, but wonder what they would ultimately be.
I'd love suggestions as I know once I get in the store, I'll be overwhelmed by gadgets and people. It would be nice to have a starting point.

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