Then explain to me how 512mb of RAM is going to make the iPad better than it already is? In the iPads current state you wouldnt even see the difference.
... drive the iPad 2G's retina display.
Listen, Apple has a history of crippling the first gen of all their products, either skimping on memory or withholding features that they know they will release in a revision. The iPad is no different even for a magical device.