I just bought my wife an iPad (32 GB / WiFi ) for an early Christmas present. Still not sure I did the right thing given cheaper alternatives and the fact that a 13" Macbook is now $999 at BestBuy and they give you a $100 gift card (the iPad was $599). But, she's going through a rough time now and I figured she'll enjoy watching Glee on the iPad for a while (I'm getting her the Hulu Plus subscription for $7.99 a month).
If you have a Netflix subscription, there is also a Netflix application.
