Games are very competitive, appeal to only a a specific demographic, and most of the time do not have in-built virality. I don't think games are a good money maker if you're not already established there.
I would guess that while games are very high grossing, gaming is pretty well understood and is unlikely to be a breakout new category of application on the iPad. For games, it's just going to be another handheld platform, maybe incrementally better than the iPhone or Nintendo DS or PSP, but not fundamentally different.
On the other hand, other types of software are almost completely unexplored on the iPad, and might open up new markets. If I were investing, that's what I would be interested in.
