Ok I have seen the iPad and what it can do.

First every bad thing you have heard is correct. Because of corporate security concerns and FAA input on using it to play "games" it is almost useless right now as even an EFB.

It appears what is going on is the Co. is handing them out to get them into the pilots hands and into the cockpit. For actual practical use there is a huge amount of work to still be done. So consider these first attempts to be for familiarization purposes only!

Now what can it do as given to you?
First it has an out of date iOS, 4.3.3.
You can watch youtube via the Safari browser.
You can add personal pictures to it via iTunes.
But camera app (if my memory is correct) has been blocked.
The Locker is great for the ease of downloading the manuals but that is about it.
The Jep EFB app works but does not include 10-7 pages (and if you have a $100 gps it will act as a moving map).
It will play music and movies that you download via iTunes.
Email works like all Apple iproducts, so you can put your personal email on it (don't recommend in stock state).

It can be "Jailbroken" with iOS 4.3.3 which will open all the apps, including the app store for you but you will loose the Locker with the UAL manuals. The reason is Jailbreaking removes the security files that allow the UAL it people to access the iPad.

It can also be updated to iOS 5.01, but you will completely wipe the iPad of all UAL information and function. So basically you will just have a normal 16 gig iPad if you do so (which may not be bad).

Warning, if you decide to either "Jailbreak" or update to iOS 5+ you can not reverse the process and return it to the original UAL state without returning it to your pilot base and having it reloaded.

Finally the sign-up process takes up to an hour.

Personally I love the idea of the iPads and their potential function as an EFB but they are still a work in progress. I also believe the Company will probably hand them out and then just drop the whole project as the next generation of airplanes comes on the property.