I updated to IOS 7 on the evening of it's launch on my iPhone 5 and Ipad 3 (retina). No apparent problems. Noticed though that my iPad was having drop outs on Apple TV using airplay; normally I have zero drop outs because of my high speed FIOS internet connection rated at 75 mbps, (but still running on wireless at anywhere from 25-50 mbps, and it streams everything wonderfully.
Then last night I updated my Apple TV 2 and Apple TV3 to the latest software--the 2 updated smoothly, but the 3 caused the dreaded flashing light and iTunes logo, so today I got a micro-USB cable and restored the Apple TV to factory and it updated to the latest software/firmware. Reconnected, and re-entered all my info, accounts, etc., All seemed ok, but Airplay is almost completely non-functional--between losing the connection entirely, audio and video dropouts (with and without mirroring), it's completely unuseable. Also with audio drop out constantly via my mac mini, in the same room. Prior to these updates, airplay was as reliable as it gets, IOS7 seemed to cause a hiccup, and the latest Apple TV updates seemed to have completely eliminated airplay from use, which is one of the main reasons I own an Apple TV.
Since my network is stable (no changes) and I did some investigation to see if there was network traffic or interference issues (not found, and no changes in placement of any equipment or other appliances, etc.); I am concluding that there are issues with iPad 3 and airplay on IOS 7, and there are issues with Apple TV update adversely affecting airplay or rendering it inoperable on all or most devices since the Apple TV software update yesterday.
I await word from Apple or a software patch, and for once I am unhappy with Apple for an update causing me to need to restore my Apple TV (ok, it happens sometimes, but it hasn't happened to me in 2 generations of Apple TV and iPads, etc.) and the non-usability of Airplay, once of my most-used features in my home entertainment system.
I'm posting this to see how many other users might be affected--I have read posts mostly about the apple TV not being detected by iPAd or iphone (I've had that intermittently but not as a rule); and about the airplay icon not being in Control Center (I've had that, but a reboot can resolve it, and it's not persistent).
Hope a fix is in the works or will be shortly, this is frustrating and has been time-consuming from my standpoint, unnecessarily so, IMO.