The sales numbers are now coming in showing just that. Netbook sales are down and iPads are moving like hotcakes. From the AppleInsider blog:
Apple's iPad has been viewed as a netbook competitor, and even positioned as one by Apple. When the iPad was first unveiled in January, Apple co-founder Steve Jobs directly compared it to existing netbooks on the market, noting that he felt the new product was lighter and more useful than low-cost netbooks, which he said are just "cheap laptops." With a 9.7-inch display and weighing just 1.5 pounds, the keyboard-less, touchscreen iPad is a much different form factor from the traditional laptop.
When including the iPad in total portable computing sales, Apple vaulted past Asus and others, according to estimates released earlier this month. The iPad sold 3.27 million units in its first three months of availability.