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The iPad 2 is definitely worth the $100. Although Apple claims graphics up to 9x faster, actual testing has shown around 5x faster on average. That's a huge difference from the iPad 1. If you do anything graphic intensive, or like games, you're going to want to pop for the iPad 2.
App developers are already releasing versions optimized to take advantage of the better graphics. Infinity Blade had a "quick update" and it looks and plays much better on the iPad 2. Imagine a title written to take advantage of all the iPad 2's graphics instead of an existing game getting a "refresh"?
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