Today, Apple will announce the iPad 3 (or iPad HD) at a press conference. The rumor mill is running at full speed regarding the new device's specs.
A higher resolution display. The iPad 2's 1024 x 768 display is easy on the eyes with great color reproduction, but it's being quickly outpaced in terms of ppi by other manufacturers. Given the high-quality display available on the iPhone 4S.
The iPhone 4S's excellent display is part of the secret to that device's success as an image-maker. Photos just plain look better on a higher resolution, higher contrast display.
A better camera feature. These days most rumors are pointing to create at the 8 megapixel camera like first offered in the iPhone 4S. A tablet may not be the most ergonomically-friendly picture making option, but it at least makes sense to keep the device competitive in that realm. After all, if the camera you've got with you is attached to your tablet, isn't it worthing?
High processing power. Since the first generation, the iPad has been a device best suited for the consumption of media, rather than the creation of it. But the iPhone is, at best, equipped with mediocre editing software. Editing photos on the small display is frustrating. If the latest iPad were equipped with the right software and a capable 8 megapixel camera.
Many ipads are expecting an A5X dual-core chip with improved graphics processing power. That would fall in line with an improved, higher-resolution display.