iOS 4.3 Announced! iMovie, Garageband and Photo Booth for iPad 2
Photo Booth was also announced and will come preinstalled on the iPad 2. It is very similar to Photo Booth on the Mac with a variety of filters for the video that are all applied in real time.
FaceTime is also coming to the iPad 2. It's exactly the same as on the iPhone and iPod touch, allowing you to video chat using the front and rear facing cameras on the iPad 2 to another iPad 2, iPhone 4, iPod touch 4G or Mac with FaceTime installed.
iMovie for the iPad 2 looks very good. It supports many desktop level features including multiple audio tracks, a multi-touch precision editor, a wide variety of themes and audio clips and HD video exporting.
Garageband on the iPad 2 looks to be as good if not better than the Mac version. It allows you to play a variety of instruments on the multitouch display including drums, guitar, bass, piano and organ. It has support for up to 8 tracks of audio in the editor and is available March 11th for only $4.99.