The idea of working entirely from an iPad has always appealed to me. The portability, the battery life, and of course the touch screen makes it an excellent device.
The downside is that everything is sandboxed. You can only run programs from the App Store which makes doing crazy things like installing a development server on the machine unattainable, but there are other ways to work around the limitation with existing apps and a little ingenuity.
Eric went the same way I did, with a remote development server. I’ve been doing this for around 8 months now and am still very happy with my iPad development workflow.