Theres a saying I mention fairly often and its "A poor artist blames his tools".
Actually, I think that saying has some weight when it comes to the ipad. The tools are definitely a 'problem' for creation I reckon, but it's a problem that can be overcome (pages, garage band and others are leading the way here).
The thing is, traditional content creation tools are all built around the PC. Keyboard + mouse for fast accurate input, reliant on a file system to share files between projects, powerful CPU and lots of memory etc. For tools like this, the ipad absolutely sucks, no argument. A touch screen doesn't cut it, and it's terribly underpowered.
What you need is basically totally new tools, designed for the ipad rather than copied from the desktop. They have to be built around the touch + motion interface, and the power that's available. Once you do that, it can easily rival a desktop for content creation, because it's so much more free and creative without the keyboard + mouse between you and the screen.
Apps have to be designed to use the hardware well too. E.g. for video editing - you don't need a big powerful CPU. There's a video encoder built in, so encoding a HD video is extremely fast and basically "free" because it doesn't use the CPU. Effects are more difficult, because the CPU is slow, but the GPU can do image processing many times faster than the CPU can. Use the GPU, and you can do effects that rival desktop software for speed! (I'm working on just that now, and honestly, it's amazing just how much you can do - I'm layering 10 effects over HD video with no slowdown at times!)