As I mentioned, I'm definitely not happy with my iPad experience now, but how about we use this thread to get solutions, and for newcomers to report their actual experience? I don't think it will help our cause much to mud-sling Apple, or to suggest that they did this deliberately to make us buy an iPad 2... that would be a tactic that isn't in Apple's character, and it really doesn't help us move forward either.
I think most people here are people who love their iPad 1, and don't regret making the decision to buy it, even though it was a brand new, and potentially risky product for us to buy. Hopefully our purchase numbers are enough to get Apple's attention to make this a priority to resolve for us. I fully intend to buy the iPad 3 when it comes out, but I need my iPad 1 to perform for two years before I do.
It seems that disabling some or most iCloud features does add a small boost in speed. I also found that making sure that the voice feedback from autocorrect is turned off helps a little. I would guess that turning off autocorrect completely would offer some boost as well, but autocorrect fixes things for me more often than it causes hilarity in wrong word guesses.
Does anyone else have any settings they've found that might help to pacify the problem until Apple can release an OS update with some fixes?