But you are still using the 1/8" input of the iPad / iPhone / iPod touch / whatever. That is the weakness, you are still using the substandard audio interfacing of these consumer devices and are still vulnerable to the hiss and other problems.
I can picture/hear it now... The PSM/boom-op has it hooked up to his iPhone and it rings during a take...
The whole point of device like this for musicians to use as a sketch pad, not to be used for serious production work of any kind. I'm sure that plenty of people will use it, however.
Now, if it converted the audio to digital and hooked up to the iPad via the 30-pin dock connector port you might have something good. Once the audio is converted to ones and zeros it doesn't care what the storage medium is, the only issue is data transfer speed and storage size. In fact, the iPad could be a real-time mixer, etc. since it is a tactile interface unit. It's already used in studios as a controller unit for DAWs, etc.