IP addresses starting with 169.254 are self-assigned IP addresses. Google that if you don't know what that means.
It doesn't matter if everything else still connects to your router. Do this. Unplug your modem and router from power. Power down your iPad completely or reset network settings if you're one of the thousands of customers who can't get to the "Slide to Power Off" screen. JUST NETWORK SETTINGS.
Plug in your modem and routers, wait until all the lights are on. Turn on your iPad (if you reset network settings, it's already on), try to connect again. Make sure you're using the right password.
This resolves this issue 99% of the time, so please, give it a try.
Now.
If WiFi is greyed out in settings, it is possibly a hardware issue, but to rule this out, make a manual backup of your iPad (just right-click on ipad under devices in itunes and choose backup), turn OFF AUTOMATIC SYNCING. For PC users, this is "Edit> Preferences > Devices" and then restore as new.
If after this, you still can't connect to wifi, it may be a hardware issue. but still call Tech support and have them run you through anything else, or take it to an Apple Store.