Ibn Naseem said:
I guess technology has not surpassed pen n' paper quite yet. I just like the idea of erasing without a mess and not having to scan.
This is true for the iPad, but isn't true in general. What you're probably interested in is a tablet with a Wacom or N-trig digitizer. I'd recommend asking for advice on a specific device over on
http://forum.tabletpcreview.com/. The iPad and similar 'media tablets' have capacitive (or sometimes resistive in lower-end models) touch screens.
I use a type of tablet computer called a convertible laptop (specifically an older model: HP 2730p), but slate models have been coming out over the last couple of years. I find the keyboard incredibly useful for productivity outside of note-taking, however. Almost all devices equipped with digitizers are Windows-based, but a few Android-based tablets have come out recently.
These computers are equipped with the same pen technology as Wacom's artist tablets (like the Cintiq), feature 256+ levels of pressure sensitivity, are extremely accurate, etc. They also have IPS displays so the viewing angles aren't prohibitive. They are good enough for artists' purposes, and more than adequate for note-taking and homework sets.
I had the same goals as you after my first couple of semesters of college. I was tired of carrying a notebook and several books. I now use the convertible laptop for note taking and productive computing tasks like programming. It is also an e-reader for my textbooks, which I scan at home using a
DIY book scanner).
EDIT: Since you seem to have had a poor tablet experience in the past, I've attached a random page of notes from one of my courses this semester. In printing from my program of choice (Microsoft OneNote), the highlighting seems to have gotten a little wonky, and the aliasing on the lines isn't quite as good as in the native program, but it's otherwise representative of the basic inking possibilities. If I want something to print nicely, I use Microsoft Journal (as is the case for homework assignments). OneNote is great because it has many additional features and allows me to sync my handwriting with audio captured during the lecture.