But....but....I thought Apple products just worked.
You will never hear me say that. iTunes is generally not my favorite piece of software.
My OOBE unhappiness continued. It offered to restore from a backup of my iPhone and I thought that this would be nice - all my contacts and apps carried over. And it was fine... except nothing worked right at all after the restore. I couldn't run any of the apps. They'd make a little box and then disappear. So I wiped the whole thing (reset all settings and erase all content) - which took seconds which is a pleasant improvement over the ridiculous amount of time it takes to clear an iPhone, and then set it up as a new iPad and things have been better since. I don't understand why it offers to restore settings if restoring the settings is going to make a mess of everything.
Beyond my irritation that it took an hour to get it to work at all, I'm still impressed with the screen and it feels really fast. But my kids have been using it ever since I put Doodle Jump on it and so I haven't been able to mess with it any more.
On the negative side, it won't charge out of the USB port on my Core i7 920 computer.
I'll try Skype later... when I get the thing back from my children. (bed time soon anyway)