I just looked at mine again... I am running on my home WiFi as I almost always do... But my guess is that the iPad is NOT set up to search for time servers when running as WiFi... I say that because folks who have WiFi only iPads don't even have a "set automatically" button for time... So when I am running on WiFi and with the "set automatically" button set to OFF I don't think I have any choice but to set time manually... Contrast that with my macbook pro that is ALSO running on my WiFi network but it DOES have a preference that allows one to set time automatically using your WiFi connection through to Apple time servers in various locations...
When I just now looked at my iPad today after having set time manually say about a week ago and with "set automatically" still set to OFF, the iPad was reporting 1:05 PM while my time synced macbookpro was reporting 1:04 PM... So over a week my iPad was off a part of a minute (so far so good)... Then, I set the "set automatically" switch to ON and the time instantly moved forward to 3:07 PM, in other words mine still has the same problem... When I click that switch to ON, my iPad ALWAYS moves forward an errant 2 hours and 2 minutes... It's just broken, pure and simple...
By the way, I had a different but apparently cellular related problem with my iPad last week... See that posted here,
http://discussions.apple.com/message.jspa?messageID=12807110#12807110
The solution to that problem was discovered by other users to be to toggle the Cellular Data switch from OFF (where mine always sits) to ON and then after a few seconds right back to OFF... I tried that and sure enough, that FIXED that issue!!!??? So the cellular end of the iPad appears to have a few bugs and I am confident my issue with setting time automatically apparently using cell tower information is yet another bug...
I, too, sent feedback to Apple a week or so ago as I'm confident this is some sort of a bug...
Any other feedback??? thanks... bob...