I own a jailbroken iPad 2 and absolutely use it as a laptop replacement. Before jailbreak was released there were a few things I couldn't do with it, but now I am completely satisfied.
Having said that, there are certain things that some people need to do on their laptops that iPad simply cannot do. I get that. However, for me personally, it does everything I need, which is basically watching videos, Skype, music, web surfing, creating/editing Office files in my Dropbox, etc.
Btw, giving advice about something you have never used for an extended period of time is irresponsible. Seriously don't understand people who hate on the iPad just because it was created by Apple, satanic Apple! Why do people have a penchant for hating things that are new and different?
Edit: and yeah, that Kindle Fire looks pretty sick. If the web browser is as quick as they are making it out to be, that thing will be a winner and give the iPad some serious competition. Which is a great thing, as competition drives development and can lead to some big advances in technology for consumers.