It looks like we’ll finally get the ability to output the entire interface over video out. Currently there’s a VGA cable that allows you to export to a display, but has to be supported by the app. In the screenshot about (from Apple.com) it shows the iPad home screen interface being displayed on a TV.
What’s crazy is the very ugly 30-pin dock connector to video-out cable, then requiring another cable to your TV. Why Apple didn’t go with a 30-pin connector to HDMI is bizarre.
With iOS 4.3 on-board, the iPad 2 can stream video wirelessly to your HDTV via an Apple TV. This does support 16:9 HD video and photo playback.