You can't save directly to JPG, you'll have to take it to the desktop and convert it using Photoshop or something, or possibly use a converter app on the iPad. The screenshot capability is for maximum quality, that's why PNG is used. Also the screenshot functionality is intended to be private and not for public use. I don't think Apple minds people using it, but it's one of those "Use at your own risk and don't ask for support or features" kinds of things. You might also be able to email yourself the screenshot from the Photo app (using the Share function), that might convert it to JPG, although you wouldn't have control over the JPG compression or size. This works on the iPhone, it's probably the same on the iPad but I haven't tested it.