Yeah, I agree that it's not a must-have upgrade for people who already have a first-generation iPad (the only major selling point for the average consumer is the cameras, but those alone will sell a lot of these to current iPad owners and new customers), but I don't think upgrades are the play here.
Apple rarely does a complete overhaul of the previous generation, instead they incrementally add features to keep up with or ahead of the competition, and to keep their brand in the headlines. This new model does both of those things very well, mostly taking a lot of the wind out of Honeycomb's sails by closely matching many of the specs of the new Android tablets, while staying extremely competitive on price.
In short, people who already have iPads are already iPad customers. They're invested in the platform and whether they upgrade on this generation or the next isn't as important to Apple as making sure the story in the next few months isn't about what the iPad can't do compared to the competition, but rather that it has the same doohickeys as the other guys, and it's cheaper.
