I've been using the free version of Pocket Metaverse for awhile for quick operations like paying/transferring funds and answering the odd offline. It's serviceable, but because there is no actual rendering of the environment & avatars, I never venture out of my skybox with it because I share the same fears as others in terms of rezzing naked and whatnot.
Discovered another option quite by accident when the app Splashtop Remote Desktop caught my eye. Turns out that while accessing your PC/Mac using this app, you can fire up SL and run your viewer remotely throught he iPad. It looks pretty decent, too, though the controls are a bit ticklish. (Forget about building and/or competently framing a snapshot as fine camera control is basically out the window!) For a quick fix, though, it'll do until something better comes along.
And I REALLY hope something better comes along!