I just find it funny that people don't remember a time where everyone liked the iPad 3. No one said it was underpowered or incapable. Only problem was it would heat up sometimes.
I bought one on launch day and knew full well that it wasn't as fast as the iPad2, since it was pushing four times the pixels but without four times the processing power. Sure enough, some graphical operations would stutter slightly now and then where they never would on the iPad2. I also knew at the time of purchase that it was slightly heavier and thicker than the iPad2 and also discovered that the battery didn't last quite as long, despite Apple's claims.
Do I regret buying it? Not at all. I wanted the retina screen and the sacrifices I made over the iPad2 in order to get it were worth it to me, even those of which I was unaware at time of purchase.
The fact remains however that it was underpowered and was released "early" because that's what the market needed at the time, even though the hardware wasn't quite up to it. That's why Apple replaced it a scant seven months later, with what it should have been to start with.
Apple have done this several times. The original iPhone was a bit of a mess - no 3G, no MMS, no copy/paste. These were features that people took for granted on other phones of the time. The key thing is that Apple (& Jobs) realised that the phone needed to be launched there and then, regardless of whether certain features weren't quite ready. To have waited would have been to miss the boat and allow someone else to potentially steal their thunder.
The original iPad, when we look back at it now, was a massively heavy, clunky design, with the non-flat rear and poor performance. Sure, it was revolutionary, just as the original iPhone was but, looked at objectively and with the benefit of hindsight, it was a premature and compromised device.
I think this is one of the key aspects of Jobs' reign that people maybe don't appreciate. He understood markets and what people wanted and that sometimes you have to release something at a certain time, even if it's not quite ready, then improve and refine it with subsequent releases.