I think everyone in children's publishing is wondering what the iPad means to picture books. Don't get me wrong, I love books, and I love the tactile, low tech experience of sharing a book with a child. But let's face it, how cool would it be to have your child's whole library of books available to you when you go to Grandma's house for the weekend or in the car? Or to be able to find the exact book you are looking for at bedtime? Searching through those skinny picture book spines in the bookcase is a drag. I used to try and organize the them but that lasts about as long as a plate full of cookies in my house.
It's going to be very interesting to see what happens. I don't think traditional books are going to go away, but I think the children's picture book industry is in for some changes. To get a peak of just the sort of things that are possible, check out this iPad adaptation of Alice in Wonderland - very cool stuff!