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The new iOS 4.3 release adds several improvements and makes the iPad 2 easier to use (the update is also available for the original iPad).
Finally, you can decide whether the switch on the side locks the screen orientation or mutes the audio. This was a 'gotcha' on a previous release for those who were accustomed to using the switch to lock rotation, because the iPad tends to switch at inopportune times.



However, the software setting is not as important now: the iPad 2 actually does a better job judging orientation than the first iPad thanks to the new gyroscope.
With the iPad, you sometimes had to convince the screen to rotate by rocking the device forward or back (almost like a fan), but that issue seems to have gone away.
We'll test the 3G version of the iPad 2 in the coming weeks, but iOS 4.3 does not let you use Personal Hotspot to share the carrier connection like the iPhone 4 does even though they both use the same iOS 4.3 release.
This is disappointing because it's something tablet users might want to do, and it's supported on the Dell Streak and the Motorola Xoom.
In a side-by-side comparison between the iPad and iPad 2, we tested several apps for speed including the iPod media player, Safari browser, the iTunes app, and the Maps app and found there was little difference. However, the iMovie and GarageBand app worked much faster on iPad 2 and without any delays.

This has to do with how the A5 dual-core processor works: when we added several tracks in GarageBand using the original iPad, a message would appear occasionally about "optimizing performance…" but when we switched to the iPad 2 – recording the exact same acoustic guitar parts and vocal tracks – the app ran smooth.
One issue with the iPad 2 overall is that it's an iterative release - the interface is starting to look a bit dated, and we ended up preferring the more colorful, animated, and technically-minded Android 3.0 OS on the Motorola Xoom.
For example, on the iPad 2, you can view open apps by double-tapping the Home button, but this is a bit clunky. On the Xoom, you can press an icon to see a thumbnail of all open apps.
The iPad 2 also still does not support widgets. On the Xoom, you can add weather panels, e-mail preview screens, and mini-audio players that make it easier to control the device.
The iPad 2 is restricted to showing just the standard icon rows. As on the iPhone, you can drag and hold icons, then drop them into groups/folders.