It has worked fine for me for along time. I recently updated both the Apple TV and the iOS on the iPad. My ipad remote app doesn't work correctly now. When trying to connect to the apple TV it tries but connects to iTunes on my desktop instead. The Apple TV screen flashes for a fraction of a second before it jumps over to the desktop music and movies and such. That will play on the TV but I cannot get control of the AppleTV menu. I reset the Apple TV, restarted the iPad. I also trashed the remote app and redownloaded it. Not fixed. Apple TV remote works fine.
iOS version 6.1
Apple TV version 5.2(6010.96)
iMac 27 2011
It is still borken.
I have AppleTV usng Home Sharing to play movies via local iTunes library on my Mac.
This shows that Home Sharing is working
However, if I enable Home Sharing on the iOS device, and then type correct user and password, it cannot see the AppleTV or the local iTunes server. It tells me to turn on home sharing on my Mac or AppleTV (which is already on and working great)
It used to work, and I used to use it to navigate the AppleTV better, rather than scrolling around with that tiny controller.