The WSJ has an article about developer issues with iPad. A larger form factor and absence of a camera make several apps like Pandora, ShopSavvy and others unappealing to users.
Like Android, the iPhone OS is now fragmenting across different sets of hardware: variable screen sizes, presence of cameras and SIM cards, different processing capability, different ports. Adding one more wrinkle to the ecosystem makes selecting the right platform for a product more complex and is a big advantage for Android.
With many Android tablets on the horizon, Android will likely gain larger marketshare given a lower price point and variety in models. Larger screens render existing web pages better and with less of a constraint on space, the focus on applications may be diminished and HTML5 may be further catapulted to the fore.