After reading up on the Camera Connection Kit and many of the issues with the power reduction and compatibility, I decided to go for a cheap one off the auction site to see how it performed.
I'm actually quite impressed. First up, I got a 2in1 usb/sd version for £8.80 delivered instead of the official one at £25. This has worked flawlessly for me so far with SD & SDHC cards and also the same via a USB card reader. I also connected my iPhone to the iPad 2 to test and it worked perfectly.
I was also impressed that RAW files from my Nikon dSLR copied over fine and you could swipe through them just as quickly & smoothly as if they were small JPG files.
I can actually see me now using this on holidays to offload and edit pictures on the go - looking at FilterStorm & Photogene for the editing part. I do like how the images are organised in the Photo app although I would love to see more flexibility in managing these albums in the iPad photo app.