I have the iPad 1 running iOS 4.3.3. I have no problem using the camera connection kit with my SDHC cards or my USB thumb drive. The only problem I have is that it only reads/writes to my Corsair 32 GB thumb drive and not my other ones. But I have no problems with read/write of my other SDHC cards.
But still, Apple does piss me off that they've done this crap. Can't wait for the other tablet makers to catch up so I can have more of a choice.