I really like my iPad, but I am far from certain that I would want to replace my car stereo with the thing. Scosche is a maker of all sorts of accessories for the iPod and iPhone and is now getting into the iPad front.
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The new car mount kit for the iPad replaces the car stereo with a back plate and a holder that attaches to a ball join on the back plate. Once installed the iPad connects to the car audio system with a USB cable and a power cable for charging.
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You can then play back all of your music from the iPad directly over the audio system. There is also a single din version in the works. I for one think it looks very strange to have a massive iPad sitting on the dash. This will be handy for the iPad GPS apps with the 3G version though.