I don't see the iPad 'replacing' the internet at this point. I do see (and agree) that the iPad (+eco system) is seen by the 'conventional' media companies as a way to deliver their (paper) content in the 'digital age' way, while still retaining their controls and potentially getting revenues off it. But, what's the problem with this? It only happens in Apple's gated community anyway (for now). They cannot implement this on the web.
Seems like a sensationalist article.