Rumor says iPad2 will have 2048x1536 resolution retina screen, plus front/rear camera, SD slot, and a lot of other improvement. The base model with wifi is $599.
If the $599 model comes with 2048x1536 resolution, that would be a really hot device when it's released. I don't like iPad first gen because it's just too big. If its screen has that resolution, it will be too good to read books/news and watch video on the device.
Let's see if this is true in few weeks.