Hmm...I dunno. The issue I see with upgrading the hardware like this is the lack of support for it. I don't think a lot of developers will spend the time making their app compatible with three different iPad versions, plus all of the iPhone versions if they're going for cross-platform (I forgot what apps for both systems are called) support.

Edit: I guess processor-intensive apps that can scale properly for each version will work all right, but stuff like games (which Apple seems to be big on promoting these days, even though the idea of dual virtual sticks and virtual buttons is incredibly flawed (but let's not get into that here)) aren't going to be able to look their best, right? Performance-wise, apps running on this one will probably run better, but they can't look better until developers are sure it's worth the effort spend extra time on one version. Then again, I don't know anything about how people develop apps, so maybe it's super easy.