The device will have to quadruple the amount of RAM (from 512mb to potentially 2gb) to still be able to run smoothly.
What? No. The only things that would actually increase by 4X is the amount of RAM required to store the screen buffers, and some graphics. Upping the screen res by 4X doesn't magically make all data and code take up 4X the amount of space for no reason. 1GB would be plenty.
Well, if they "technically" put 1536x2048 display into the next iPad, I promise you AT&T won't be there to subsidize it to same prices as the previous gen. as they did with the iPhone 4.
So how come the iPod touch didn't increase in price? Components always get cheaper over time.
--Eric