For the next edition the developers briefly demoed gameplay on the iPad 2, that was mirrored on a big screen HDTV in Full HD 1080p resolution, via the new HDMI dongle. The 10" screen on the iPad 2 is used for the map and race stats, whereas the pure fun is left for the 1920x1080 resolution of your HDTV, without any black borders or upscaling from 720p.
The visuals look great, and the game is running with 30fps. That's what is expecting us in the future, tablets and smartphones will be slowly crowding out dedicated gaming consoles for the more basic titles, and even for the sophisticated ones. Now make all of this wireless, and we will be sold completely.