First let me tell you that using iOS 7.1 makes a big difference.
If you use your iPad to surf heavily, switching tabs all the time, then you will probably hate the iPad. Is it a memory problem? Probably. I don't know, but it seems like it.
If you use apps that need lots of memory, then you will see lots of refreshing when switching between these apps.
Of course more memory would be great and would make the iPad future proof, but unfortunately we are stuck with 1GB.
Apple optimizes iOS heavily so that it doesn't need a lot of RAM, so the issue isn't that big, as it would be on an Android tablet having 1GB of RAM, but still, memory will be a limiting factor going forward with new iOS versions.
I would say, the iPad works very well (with iOS 7.1), but the refreshing tabs issue is still there and doesn't seem to go anywhere. If that doesn't bother you, then you will love your iPad..