Marc, I guess I'm in the minority. I have a 64GB iPad 1 with 3G. I use 3G when I'm out shopping and when I'm at work and cut off from the Internet for security reasons. I also was grandfathered in with unlimited downloads from ATT.
Regarding size, I have about 1,000, some photos, and some books. On a few trips I downloaded photos from the camera to the iPad, but then transferred them to my MacBook Pro, which has a separate hard drive just for photos. Since I seldom have more than a few videos on my iPad nor keep a large number of photos on it, I don't use even a quarter of my storage capability.
I would definitely not consider an iPad 1, because of the lack of a camera (e.g., Skyping), but I infer you were thinking of obtaining an iPad 2 at a discount.
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Eugene