For me its a mediocre upgrade because:
1. Heavier
2. Facetime camera is crap
3. A decent camera is always incomplete without flash
4. No cpu upgrade (only GPU upgrade thats what X stands for)
5. Still no external storage option (remember it came to Mac very late, so Apple will bring it when they know avoiding it might loose market)
6. 4G is useless in Europe or elsewhere except US
7. Pre-loaded office app is missing
8. Retina is redundant and buzzword. You still have the same number of app icon in one row!
1. The weight increased by .11 lbs - barely enough to even notice in all honesty.
2. The Facetime camera is also used for a select few cases (i.e., Skype/Facetime/GoToMeeting), so it does not need to be as high res as the back-facing camera.
3. Most people aren't going to be using the iPad to take photos in low-light situations, so a flash really isn't that critical a component at all.
4. There was no need to upgrade the CPU side, as the dual-cores were already more than adequate to handle even the most taxing iOS app. The GPU upgrade WAS necessary because the device now has 4 times the number of pixels as its predecessors.
5. There's actually multiple options to store apps/data externally, including the computer you sync to via iTunes, iCloud, and Dropbox. The last thing Apple wants to do is add an external dongle or drive of some sort to the iPad, as that basically kills the form factor advantages.
6. That's not Apple's fault, that's the fault of the wireless carriers' inability to agree on anything. The only reason why there's separate ATT and Verizon versions of the new iPad is because the carriers use different frequencies for their LTE service.
7. Seriously? Windows PCs don't even come with full versions of Office preloaded (unless you buy direct from the mfr and pay $150 or more for the product). Those computers at box stores with Microsoft Office on them only have a trial version, you still have to pay list price for the full version. Furthermore, you can buy Keynote, Numbers, and Pages for $10 each from the App Store, meaning you're paying significantly less than you would for any competing product.
8. You're basing your critique of the retina display based on the number of icons in the row? You have no idea how the iOS interface works, do you? Of course the icons are the same size, because if you made them half the size then people would have more difficulty tapping on the correct one. That's a necessary tradeoff in a touch interface. Also, if you compare the icons on the iPad/iPad2 to the new iPad, you'll notice the the icons themselves are much better looking because they pack 4x the number of pixels into the same area.
Furthermore, the true advantages of the Retina display are not seen on the home screen. iPhone apps look significantly better at 2x on the new iPad, photos and movies look much sharper and have significantly better color reproduction (the new screen covers about 96% of the SrGB color gamut), text is significantly sharper and clearer, and games and apps designed for the new display look amazing.