No, this isn't true. People use the iPad everyday to create, write, paint (yes, other than Draw Something), create all kinds of music with the myriad of music apps and synths and drum machines etc et. It's not a consumption device. It's just a device. People use it in different ways. Shocking, I know...but people use things in different ways than you.
Is it better than a laptop? In some ways yes, in some ways no. Is a laptop better? Again, in some ways yes, in some ways no. Can some people live with the iPad alone? Very much so. My wife has been using computers now for 25 years, she hasn't touched her desktop since getting her iPad. Seriously, she does everything on it. Write, do email, do her banking, read, edit PDF files, log into her work computer via SSH and works in a terminal. If she needs to type something long, out comes the bluetooth keyboard and she types away, then when she finished she puts it away and it goes back to just being a tablet.
Full disclosure, I personally couldn't work this way. I'm kind of set-in-my-ways with my desktop and even a laptop feels cramped. But I recognize that my way isn't the only way.
But let's get back to the "consumption device" thing people throw out there about tablets, and the iPad specifically. I've shown this isn't true for some people. People that don't let others tell them what to do or haven't heard you can't create on it. But lets assume I didn't say that and just go along with you, and others, and say it IS only for consumption. What's wrong with that? Why is this weird insult directed at this device? Do people say that about...I don't know...the Microsoft Xbox360? "Oh, it's just for consumption and watching movies and playing games...not for creating anything". If not, why not? Are DVD players and big screen TV's get this thrown at them too? What about the opposite? "Oh, that guitar is only for creating, you can't consume anything on it".
Okay, I've stepped over into silly-land, but hopefully you get my point.