I took my iPad into the local Apple store genius bar. They took the unit to the back and tried twice to restore it. They could not bring it back to operational. The guy said he had seen the same thing with two iPhone 4's that day (3 days ago on Friday, so some of this may be old info by now), but mine was the first iPad.
The guy, who was really quite good I thought, recommended I take home a replacement. I was surprised they couldn't fix it, and sad because I loved the display on my old iPad, and displays are always a bit of a crapshoot. I'm used to the display on my many Apple products being a little disappointing. I really felt like I'd gotten a gem this time. And the display is really the whole deal with the iPad, no? But the guy said he thought there was little chance a fix would be available soon which I could apply. So rather than not have an operational one, I went for the changeover.
So why am I not thrilled with such great customer service? Because I don't like the display on my new iPad. On my old one, the white was on the cool side, with maybe a hint of blue, but to my eye a great balance. The new one tends to pink/purple. I wouldn't mind it so much - for some things you could just call it a warmer color temperature - but sometimes in movies and photos, the skin tones get a little purple faced. I mean it's not that far off in the grand scheme, but I'm still a bit bummed. I compared it to a friend's early-production iPad at work - like my old one - and it was pretty evident on a blank white background in an empty Safari window what the difference was. I might speculate it's a different panel vendor, but really no certainty there.
I figure I'm just going to live with it - I'm not sure I have any recourse, and I don't want to create more recycled electronics. Haven't even gone looking for display-issue threads here. Like someone else quoted: LCD's? Meh.... I'm still running 3.2 now. Holding off the upgrade so as not to brick another.
(One more bit of pure speculation: Do you suppose the restore is not part of the normal production process, and we are actually trying some functionality out for the first time with this upgrade? I might think they don't have time to burn the flash this way in production, and they actually build the units with pre-programmed flash chips. Again, just pure speculation, probably not of much use.)