You folks should open a book in iBooks and check that out. Also, Apple apps like Pages and Keynote look much better. Then there are the high res games.
As for movies....I have several hundred 1080p rips from Blu-ray. i keep them around in case I travel and want to take a few with me. Having the 64GB version helps, but I would not let them live on the tablet. Right now I'm looking at a TV show ripped from DVD...and frankly I don't see a good reason to rip any higher than that for an iPad. I'm almost two feet away while watching. Resolution makes little difference here. I can certainly notice and appreciate the text displayed on webpages. I notice it instantly.
The volume on my iPad 3 sounds identical to that on my old iPad 2.