IPad or Mack Book Air?

I'm in a dilemma right now. My father just took my old HP laptop for his job and now I'm left with a choice of getting either and iPad or MBA.
I was origionally going with the air since it would be for taking notes or doing quick write ups and going to class. The big jobs I do on my desktop anyway.
Then I was looking at the iPad, and it costs half of what the air cost, but I was wondering how it is for note taking? For school work? Can I open word files in iWork and vice versa? Can I use a wireless HDD like the Kingston WiDrive to store iWork files and open them on a larger computer on a program like word?
Or am I just better off getting the air?

I have a Macbook Pro and an HP TouchPad.
The TouchPad is lightweight and had a long battery life.  But the touch-keyboard is not to my liking.  It is designated as a testbed for when I learn Android app programming.
The MBA is a real computer (ds store will argue with me on that point), with a real keyboard.  And it has an operating system that can also run the full-professional desktop (floortop, I would say, based on its size) Mac Pro.  Yes, MS Word/Excel run, as well as MBA being able to run Windows in Parallels or VMFusion or VirtualBox.
But what can you afford?  Do not spend your last penny just to please us.

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