A more practical approach would simply be doubling the resolution of the current iPad (1024×768) to 2048×1536 at a 260 DPI. While not quite a “Retina” display, it would follow with Apple’s efforts to avoid fragmenting their product line.
Makes sense since the iPhone did the same thing.
I’m not sure yet if I’m going to upgrade my current iPad to the v2 when it comes out. I honestly haven’t seen anything that’s worth the expense.