John Gruber on the iPad 2 retina display rumors:
Rumors are rampant that the upcoming iPad 2 will feature a higher-resolution retina display. Long story short: No, it won’t.
I was about 670 words into a post that comes to this same conclusion, only I don’t have any sources like Gruber. As much as I want the retina display iPad I just don’t see how it is cost effective and possible given the power needed to drive it.
Don’t bank on it this go around, but the iPad 2 should still be great.