I was expecting night and day difference
I get most of my tech gossip vai Leo Laporte's TWIT podcasts, and even he -- a self confessed iPad evangelist -- says the difference is not as immediately obvious as he expected.
I imagine browsing a text-heavy website is one area where a difference will be probably be more immediately obvious, but I still think the screen on an iPad2 is superb, and while using the one I bought my mother I never found myself thinking "wish I had more pixels", mainly because the whole pinch & zoom thing is so intuitive and effortless that zooming in a bit on fine text isn't an issue.
The iPad2, with its smaller energy footprint, mature technology (no yellowish screens), and lower price, is a very compelling purchase. It is, however, hard to stop yourself wondering what the newer hardware will eventually be able to do.
Personally I'd be happy to pay £400 but swap the higher res screen for a USB port, SD card slot, and microphone jack. But we all know how likely Apple are to add those. Why make the consumer very happy when you can make them mostly happy.