I agree with a lot of the posters above that the iPad display is very good right now. I would say they would probably keep the same screen for cost reasons and perhaps push it up to be able to display 1080P for movies.
I'm a bit split on the what I want the next gen iPad to be - I'd like it cheaper to recommend to friends and family but for myself I'd like it to be faster and more features.
It would be great if they had the lower model at $350 price point, plastic unibody case, same specs display and for us apple fans, the real deal with glass/aluminum case, higher res display, cameras, faster processor, etc for the usual apple tax prices which I'd be willing to pay.