The iPad lacks Flash, which actually isn't nearly the issue it was a year or two ago. H.264 has gained a lot of popularity, and sites like YouTube have figured out workarounds to allow them to function on the iPhone OS. There are still a few big pains though, the worst of which is a total inability to use Hulu.
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Now AllThingsD reports that executives behind Hulu are thinking about ways to add it to the iPad. The most likely solution seems to be a Hulu app that would allow the site to function on the iPad. Sadly, there's almost no chance that this application (if it launches) will be free.
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The broadcasters behind Hulu are eagerly looking for ways to monetize the site. One possibility would be a 'three screen' approach, which would involve extending Hulu to televisions and mobile devices. Hulu could continue to give away their service via browser, but they could charge for access over a mobile device or connected TV. The final solution is still up in the air, but one thing that DOES seem certain is that Hulu will not work on the iPad at launch. Bummer.