Have a first gen iPad. If I would upgrade in the future, I would choose a Samsung Galaxy tab. Apple simply doesn't want users to take full advantage of their devices, instead limit their exp, I know you can jailbreak and its fairly easy, I have done that, but still the iOS is limited and a Google Android device would be better. Simply put, Apple devices are just lifestyle statements, clearly in terms of function, most users would prefer flexibility.
In any case, I would like to boast how I use the iPad. Aside from using the tablet at home in surfing the net it is also my Mitsubishi Adventure's LCD monitor. So how do I do it, well, just install the OPlayer lite in your iPad, upload some videos (any format) and you're ready to watch. To use it in the car, you would need a windshield mount for your iPad, then mount it at the center (mare sure your windshield visibility is good), activate it's Bluetooth and pair it w/ your stereo (w/ Bluetooth functionality of course) so much so that the sound of the iPad is then outputted in your car's speakers, similar to using your phone hands free. To add, my iPad is not 3G but I have an iPhone w/ 3G that I can use a a hotspot, so I can use my iPad as a semi GPS device as well, play you-tube videos and surf while in the car. So, will I need an overhead projector that can only play DVDs for car entertainment, I guess not.
Any further questions on how to do this, just let me know.