Isn't this an iPhone (4) only app?
If that's still the case, it leads me to believe RAM plays a HUGE role in this application. iPhone 3g has 256, the 4 has 512....while the iPad matches the 3g with the 3g. 256 megs.
It might not even be a possibility, without bringing the iPad to it's knees?
Definitely a consideration. I'm all for having a more portable form of video editing than my 17" MBP with FCP (and even this machine has it's issues, compared to home work with the MP or iMac).
I think the next version may allow for it...but I think this is one of the reasons there was no camera on the iPad (not to mention. Digital photo and video editing BOTH take RAM to function optimally. Not one of the stronger suits of the iPad (RAM).
It's pretty cliche these days...this first generation is certainly a consumption device, not a creator. That's where the horse power is needed. For creating media...not necessarily enjoying it (Since we've crossed the hurdle of HD streaming and playback).
My $.02