My iPad drops the wifi connection all the time. It normally picks it back up again straight away, so you don't notice when web browsing (although sometimes it stalls loading a webpage, and you have to refresh). But on Youtube, it's lucky if you can get through a whole video without the wifi stalling it. And it's not very practical refreshing a video, so I basically can't use Youtube on the iPad.
I know that Apple have acknowledged the Wifi problem and said an update will be released (at some point), I think it's slightly unfair that the fix is not coming out "within a couple of weeks" like the iPhone update. I don't know if I have a defective unit or if it's just the known issue (especially as Apple have released such few details about the problem they are acknowledging).