Another iPad user here. 4th gen.
I have mine hooked up to a Roland duo ex interface. I send midi clock into it (and the rest of my rig) from an Acme-4.
Audio outputs from the duo ex into the mixer. Very cool sound quality. There are some great synth apps, Animoog, Alchemy, Thor, Sunrizer, Nave (to name a few). Add audiobus to that and start pinging stuff through Turnado, things get interesting. This is all stuff I do in Ableton regularly. iPad lets me take that setup anywhere.
New to the iPad is again Sugar Bytes Thesys midi sequencer. I run that as a VST and its very powerful.
Auria multitrack is due (imminent...this week??) to have midi clock introduced as a pre release before full blown midi. That's big.
If you have the right interface (Auria website has a comprehensive list of tested interfaces) you could have a whole bunch of clocked hardware running into Auria and be recording seperate tracks all synced (assuming a later iPad. Later the better).
I havent bought the Auria app yet as i've been waiting for the addition of clock, although have followed its every improvement.
Up till now ive been using 2x Zoom R24's for 16 track simultanious recording. That'll change very soon.
If you want a "driver and computer free " (iPad isnt a computer really is it!!...you know what I mean
) recording environment with some good synths and effects, midi clock and decent midi sequencers its worth a serious look.
OS 7 due this Autumn looks as though it will push the audio side of things further.
Remember though you need to make the right interface choice, it needs to be class compliant (no drivers required) .That could get expensive if you need a lot of ins.
Plus the issue of thunderbolt v's 30 pin adaptors v Camera Connection Kits v Itunes v all that other crap to deal with with Apple, if you can cut through all that, its a serious tool now. No longer the toy from a couple of years ago.
Oh and I can use Lemur to control Ableton.........nice
Cheers
D