More like all about what you can do with upgraded optics (as the camera is expected to be updated, too).
But what's the use of upgraded specifications when it doesn't give you any benefit. The iPhone 4s was a disappointing example of upgraded specs without any gain.
Umm, one word for you: Siri. Like the software or not that was the big app launch with the 4S and good lord did it work for them.
I do agree with what you're saying though and think Gruber put it best: It's all very well having improved hardware but you can't really demo that on stage. You need cool new software to show how the hardware lets you do things you couldn't before. Now the iPad 3 is a bit of an odd case as a retina display (let's just assume that's happening at this point) will bring improvements across the board so you really could spend 30 minutes just demoing iOS 5.1 and the benefits it brings. But it does make sense to have improved apps and content too and photos does seem the most likely candidate. I don't think it's out of the question we may see one or more of:
iPhoto / Aperture
iTunes media at 1080p
iWork update
And, in a real long shot, maybe they'll bring Final Cut Pro to the iPad if the internal hardware is up to the job.
I'd also expect some software demos from third parties to show off iPad Retina apps. Epic and Firemint seem like strong possibilities on the gaming side, maybe something like flipboard for text?
