I read this question a few weeks ago. I thought about it when I first saw the iPad.
Do you think it would be possible to set up a development environment on the iPad? I think it would be awesome if there was an InstantRails App, a Django App, maybe even 280 North's Atlas could run on it :).
Would you develop using an on-screen keyboard and a 10 inch screen?
Steve Jobs seems to think touch-screens are the future of web browsing. What Future does touch have with programming?
Looks like someone is working on it! http://dribbble.com/shots/15159-Oh-yes-working-on-a-text-editor-for-iPad