There are other rumors floating around suggesting the iPad 3 is being upgraded with a retina display with double the pixel density of current iPad devices (iPad 1+2 sport 132 pixels per inch), which would be one of the main selling points. It's also been reported that Apple's eying a February 2012 release date.
A retina display wouldn't necessarily require a larger chassis, so perhaps Apple is also gearing up to upgrade the iPad 2's craptacular cameras, especially since the rear-facing camera on the iPhone 4S is arguably point-and-shoot quality, and leaps and pounds ahead of the iPad (not arguable).
Regardless of the reason, the Japanese blog says the iPad 3 will still support current generation Smart Covers. If true, that means one less accessory to buy, assuming you're gung-ho to get rid of your iPad 2 in the first place.
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