Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
My mind would be absolutely blown away if Apple came out with a Retina-Display second-generation iPad, but I doubt it. I expect a front-facing camera, improved batter life, gyroscope, faster processor, and maybe a possible back camera, but nothing more than what's listed here. Don't expect an iPhone 3GS to iPhone 4 change. At least not this early... ;)
 
It will definitely get a camera and speed improvements, it might get an SD reader, improved battery, slimmer size and higher resolution 'retina' display. Can't see anything else that they would change.

Hopefully iOS 4.2 will give some improvements to the current iPad, which is now starting to feel a bit dated against the iPhone 4.
 
Things I'm basically expecting:
- A second ipod style port on the side
- front & rear facing camera
- 128 gig option
- style updated to mimic iphone 4
- updated processor


Things I don't expect that would be awesome:
- a chip that will let the thing receive tv & radio signals off the air.
- Mini USB port
- retina display
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.