The more I play with the iPad Camera Connection Kit, the more I realize what a little chunk of magic it is. Tonight I’ve used it to connect a Blue Snowball mic to the iPad 2 for audio recording with GarageBand. The iPad recognized the mic instantly and made it available in GarageBand. Below is a brief test recording.
While hardly a professional rig, I can see using this setup to record audio on location with minimal fuss. In fact, the mic is the largest piece of equipment. You say you want a simple way to record an episode of your podcast at the local pub? Here it is (and much cheaper than mic + laptop).
For more fun with the iPad Camera Connection Kit: