As pointed out, sales tax might make it a wash. However, having a Red Card saves an extra 5%, which makes it $15-20 cheaper than Wal Mart, depending on tax percentage in your area.
I guess if you're a regular shopper this makes sense. Obviously not a good device for content hoarders, since it has very little storage. Otherwise, this is the best value in iPads.
The bigger deal here is the 32gb model for 319.99 and the $80 gift card. I pulled the trigger on one this morning. Combined with the extra 5% with a Red Card, the net ends up being only about $20 more than the 16gb deal at for $199.
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Thank you!