Pages-to-EPUB workaround
For those interested in writing ebooks for the iPad directly through the Apple iTunes contract: There is an article with a workaround workflow so that most of the formatting and inline graphics could be carried over into an .epub document.
The article describing the Pages-to-EPUB workaround workflow is in the "How to Articles" at http://ezepub.com . Other free Author and ePublisher resources are there as well.
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2-24" iMacs, 2-Aluminum 13" MacBook/MB Pro, Mac OS X (10.6.2), http://ezepub.com