iOS 5 will reportedly allow the syncing and playback of 1080p video, according to a 9to5Mac source.
1080P video now syncs to the iPad 2 and is playable in the full 1080P format. Prior to iOS 5, iTunes would not even sync video of the 1080P quality. According to first hand accounts, playback is very smooth and looks great. End users will be able to get their hands on this new feature in fall, when Apple officially delivers iOS 5 to customers.
the iPad 2 would get it because of the processor power and ram but the display can't do full 1080p.
Output is no big deal. There are so many much much cheaper ways to hook up 1080p videos to a tv. Plus those videos don't have to be in the stupid apple container format.
It is funny though that they'd have this yet the appletv only does 720p. What a dumb move that was.
I wonder if 1080p video playback will work via Apple Composite A/V Cable, connected to HD capable TV? That would be cool, otherwise I don't see much value in 1080p movies on a "768p" iPad screen.