No - saw it at the store. Faster processor/graphics, thinner, cameras - difinitely iPad 2.
There will be lines again in Sept. for iPad 2.5 (more memory, better cameras)...
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If there is a 2.5 in the fall, I expect it may very well be a 7" version. I just don't see any other hardware bells and whistles Apple can out into it right now...other than just slowly evolving spec wise. Would retina display warrant an x.5? Is it even cost effective yet?
I'm not certain there ever will be a 7", but if there is, it would live up to being an x.5. It would also come in at a lower price, which would make it a better seller for gift giving. Leave it to Apple to announce it a couple weeks early for availability on Black Friday...mayhem.
Where Apple can make a greater leap is in software rather than hardware. Let's see what iOS 5 has in store