I'd like to have my iPad under observation for a while, i.e. I'd like to control what traffic is transmitted between the gadget and teh internets. My router runs dd-wrt. What options do I have pertaining to full monitoring of the iPad's traffic (on either side)?

Not sure this app is what you are looking but look into Net Master HD

Thanks, it has some neat tools I was also looking for. But doesn't do listening to traffic / sniffing.