Problem is a few things.
~Lacks needed support to monitor car systems
~Writing apps is not 100% and might not run properly
~Horrible connection (only 30 pin)
~Not cheaper than a custom built car computer (with Atom & Ion setups going for 200-300)
The iPad is a very nice idea, but the control Apple wants over it kills any progress unless they open the doors.
To not just be negative about this, if you want a good/proper setup look at XP or Android running on top of some netbook hardware. You will get plenty of power, graphically you do not need much, and both of those offer more freedom than the Apple OS on the iPad. Also, there is plenty of support I know already for in car controls through XP and with how open Android is I can see it being that way in a few years or sooner.
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