iOS 4.2 is a nice leap from iOS 3.2, but there are a few things that would be nice in a future iOS 5 update.
Dual-display app mode
One of the best ways to utilize the thick screen, would be to run Mail and Safari apps side by side in landscape mode. In portrait mode these dual running apps could be the top half and bottom half.
Even though there is not a camera on my iPad, there could be a camera accessory to plug in to provide your missing camera. The iPad 2 is expected to integrate a camera, so this has to be in the back of their minds anyhow.
Native Clock Integration
There are many apps that fix this issue for Apple, but the iPhone is a perfect bedside clock... The recent bug in the daylight savings portion of the iPhone created a significant uproar, leading us to believe a large portion of iPhone users were relying on this clock. Why not make the iPad a larger version of this bedside clock?
AirPrint, Gone Wild
It would be nice to have this functionality added to my Epson printer :(
What other enhancement ideas do you have for iOS 5?
How about some cursor arrows on the onscreen keyboard...