Most all fonts and graphics on iPad apps that had not been updated are fuzzy. Even the apple insider logos and graphics show the same amount of blur. Call it the curse of the early adopters, but it can be quite annoying!
I do think that within the next 5 years local storage will go the way of the dodo and everything will be run off of a cloud type service. I think that is Apple's plan and that is what they are trying to implement- and that they are working on a high bandwidth national wireless/wifi system to compete with (and, hopefully, overtake) decrepit and limiting cell phone service.
The dynamic duo of iCloud and Time Machine not only gives me peace of mind when working with important documents, but also takes a huge burden off of the storage capacity of my new iPad. I have a feeling that in the near future, storage capacities of mobile devices will matter less and less, especially if you have a cellular enabled device
I love the new iPhoto app. It is great for somebody like me to be able to edit photos on the go. I use it for work, and it has Already increased efficiency of my job. Plus, it is so fun to use. I do wish that they would incorporate better organizing methods in the program, however.