After much thought I figured out a work around. Its a little convoluted but it will work.
All you do is import your JPEG+RAW images using the camera connection kit, then open the "imported" Album in iphoto on the ipad. You can then choose to copy them to the camera roll. Now go back into the photos app and delete all the photos from your "imported" Album. It will say that it is going to delete them everywhere but really it doesnt because it leaves the JPEG in the camera roll. The result is that you will only have your JPEGs that you imported in your camera roll and the RAW images get deleted.
The only thing I cant figure out is how to select multiple images in iphoto to be copied to the camera roll which means you need to do them one by one. There must be something I am missing in iphoto but I really just started using it the other day.
Regarless I have figured out a way to upload your RAW+JPEG images from your camera and only keep the JPEG's without having to connect to a computer.
I should also mention that this will work if you import RAW only images but the JPEG created by iphoto is pretty small and not retina quailty. Therefore I recommened you shoot in RAW+JPEG if using the workflow.