It doesn't appear so... From what I've seen, it's similar functionality to the iPod music player. I agree it'd be great to have more of the functionality from iTunes "native to the iPad". Mostly, I'd like it to automatically update my podcasts, so I don't have to sync as much (my main reason for syncing is to update my podcasts more quickly). Plus, it'll just make the iPad more usable was a stand-alone device.
I haven't seen a really detailed look at the music player software included on the iPad, or if it includes things like the ability to make playlists. I think this would be easy enough to add, and with the big screen, certainly practical. I hope they do it... if not at launch, then via an upgrade later. I don't see a downside in this, nor any major technical challenge to doing it.