This is an interesting classroom management concept for 1:1 situations when teachers want to control the presented content. Not sure about the ability for students to interact with content, but they could take screencaptures and add to their notes easily. Lots of potential.
disclosure: I am the Director of Edcuational Technology at Mulgrave. This fall Mulgrave School in Vancouver, Canada, handed iPads to all the Grade 3 classes. Three weeks into the academic program and lead teachers on the project, Melanie Cannon and Shauna Ullman throw down one of the best uses of the iPad I've seen yet.