MacRumors got a look at the licensing agreement and noticed the following little gem with regards to free (like iPhone) vs. paid (like iPod touch) updates:
Apple will provide you any iPad OS software updates that it may release from time to time, up to and including the next major iPad OS software release following the version of iPad OS software that originally shipped from Apple on your iPad, for free. For example, if your iPad originally shipped with iPad 3.x software, Apple would provide you with any iPad OS software updates it might release up to and including the iPad 4.x software release. Such updates and releases may not necessarily include all of the new software features that Apple releases for newer iPad models.
In other words, if you get the 1st gen iPad with iPhone 3.2 on it this weekend, you'll get iPhone 4.0 for free sometime later this year (we hope!) but will have to pay for 5.0 sometime in 2012. (The last iPod touch upgrade was $10 -- not as nice as free but well worth it given the functionality added).
What do you think, fair or foul?