It is not possible to create a smart list on the iPad. You can only sync them from iTunes, and of course that means they only update each time you sync, and with what is in iTunes. Sorry, maybe in a future update.
There might be a way to "trick" iCloud into doing something like this..... Hmm.... I have an idea. Ill post more later![]()
Sent from the Droid... The one you were looking for...