If I were living in the UK, I would snap this up in a second. Business Insider found a Groupon UK deal today for a £49 or $79 32GB iPad — although it's last year's model and comes with a two-year T-Mobile subscription, it's still a good deal if you were already looking to purchase one. You'll be saving about £180 or $289 off the regular iPad 1 price, according to T-Mobile. This compares to the US Apple store slashing the cost of the old model by only $70.
I think I'd be satisfied with the iPad 1, because it doesn't seem to be drastically different from the iPad 2. According to GeekSugar, some of the benefits of the iPad 2 are the faster speed, thinner size, and choice between a black or white iPad — all those I can do without!