^
I think they're misusing the word "tether" to refer to the wifi syncing that's coming on iOS 5. Actual tethering (i.e. using a iPhone/iPad as a EDGE/3G modem) is something that one does with great caution nowdays (at least on AT&T).
XBMC - Lay in bed at night and watch my 1080p rips without stuttering and having to dee code them as separate files from my HTPC. Definitely needs an iOS interface, though.
This is a HUGE reason to jailbreak the iPad.
For me, things like SBSettings which are absolutely essential on the iPhone are less useful on the iPad (which 1) has better battery life and 2) isn't used for very short periods, so requires less on-the-go manipulation of 3G, location services and other settings).
However, for anyone using the iPad as a portable video player, the insanely powerful (and free!) XBMC is essential and beats the pants off any App Store player. (720p playback stutters on the iPad 1, but that seems like a hardware limitation.) The fact that you can add an array of high quality streaming TV and movie sources (of dubious legality, it has to be said) is amazing. The auto-populating movie/TV info/banner/thumbnail magic is just icing on the cake, as is the bonus of being able to simply point it to different apps' documents (say, AVPlayer HD) folders as sources, so you don't have to have multiple copies of files or set up fiddly symlinks.
As far as an iOS interface goes, between the single swipe left gesture, the double tap, and PM3.HD skin, you've got an attractive and perfectly functional (albeit not always intuitive) interface. A more minimalist option I like is the xTV-SAF skin. Joggler works too, but has some horrendously ugly UI.