Especially considering if people plug out the iPad the moment it displays 100%, they won't get the full 10-hour use out of it. So, they'll then be (wrongly) complaining that the battery life isn't as advertised.
Read it again. The idea is that you get the advertised battery life when 100% is displayed. So technically you get a little better if you let it charge past that.
This isn't supposed to be a trick by Apple, nor is this kind of thing only carried out by them. It's all done in the name of the best user experience. To keep the battery working the drain/charge cycle has to occur. It's not worth explaining this to everyone because it shouldn't matter to them, but seeing it drain while plugged in would be alarming to most people. The easiest answer is to do it behind the scenes and display when the battery reaches a perceived 100% rather than actual, and have the life be rated at the base of that perceived 100%.