And it plays fine with Mobile Safari, including adding the bookmarklet? (Haven't got iPad to hand). If so, that's a pretty good way round it.
Presumably it works using the same javascript method described in this everythingicafe thread:
Increase font size in Safari without zooming
Am surprised though that there are still no font options in the Mobile Safari settings. Seems such a strange omission for a device with such an emphasis on the pleasure of web browsing on it.