I don't think it's a problem with the iPad, itself. I think that the iPad, much like the iPhone, is tuned for lower-bandwidth environments, such as cellular networks. I can only say this because, looking at the transfer-rates of youtube compared between my macbook and ipad, my macbook gets ~293 KB/s, while the iPad streams at 66 KB/s. They're both requesting the same youtube video, it's just that the iPad, for whatever reason, wants to pull data at nearly 20% of the speed that it *could* pull at.
Anyway, I think that the tuning for lower bandwidth situations also makes it a bit more sensitive to packet loss. When the iPad (or any node, for that matter) sees packet loss, it thinks that the server (in this case, youtube) is pushing too much data for the network to handle. As a result, it drops the TCP window size, which can cause a whole slew of algorithms to slow things down. I often see a drop in the TCP window size not too far into watching a video on youtube from my iPad. This correlates with a drop in the data rate.
-This could be caused by the apple acknowledged bugs with the wireless. I've occasionally seen the wireless indicator disappear and reappear, which leads me to believe that it flashes off of the network for a second.
-I think that the tuning for the TCP/IP stack could be better, and allow for a bit more packet loss before drastically dropping the data rate. At the very least, they should accomodate for the fact that I'm using my wireless connection, rather than a cellular modem.
-This could also be caused if you are using DNS servers other than that provided by your ISP. An example would be OpenDNS. Google/Youtube have servers located geographically close to you, and use DNS tricks to figure out which youtube servers to put you in contact with. Typically, if you use your ISP's DNS servers, you've got a better chance of getting Youtube systems that are close to you. This results in lower latency, and lower likelihood for packet loss.
I'm that a fix in the future would fix all or any of these.
~Mike