Look for them to come out with the iPad's big brother: iSlate, which will run a scaled down version of OS X.
If the only difference were size and camera(s) I would not care either way. I like the size of mine and have no interest in a camera.
The only thing I would improve on my iPad is a faster 3g connection (that may be because the at&t network is not up to speed in my area) and more apps that I actually like.
I can not think of anything related to the iPad hardware with which I am not already satisfied.
Here is what the iPad 2g should have when it is released in the the 3rd quarter 2011:
Dual core A8 CPU
1GB MINIMUM of RAM
32GB MINIMUM NAND memory
front facing camera, no rear facing camera.
SD card slot
It won't have many of these things, but it should.
Ooh Muyoso for a moment there I smiled....
Tasty. Very tasty.......
Certainly believe the cameras will be there to give a boost to Facetime.
Who Cares..... I'm happy with my current iPad till next year... That is the price you pay for technology. Hey I still use my Newton and it is still advanced in some ways. Handwriting program was ahead of its time.
It's not going to happen.
I wouldn't put too much store in anything Digi Times 'reports'.