One more iPad screenshot, of the text input interface. (as before, tap on the screenshot to reveal the whole thing)
Transparent handwriting is (for the moment) too much of a memory hog to enable on iPad, and taking up the entire 10-inch screen with a handwriting box is a waste of space, so our handwriting box now appears on the bottom of the screen just like Apple's (though still bigger, smoother, faster, more accurate, multitouch-enhanced, and with traditional character support).
Moving your finger back and forth between the top and bottom of the screen is kind of annoying, so ultimately we're planning to relocate the input selector from the top of the screen to the bottom and put a few additional functions on it, but as a quickie workaround for this first release, we added a "Key" button to the handwriting input box (and a corresponding "HWR" button to the on-by-default keyboard tone bar).
You might also notice that the split-screen view can now work even with input open; we've managed to implement this on iPhone / iPod as well, though it's disabled by default on those, and on both platforms it only works when the definition is on the left or right side of the screen (not at the top / bottom, even though that's an option in portrait orientation).