Just a pointer. I would have invested just a tad more in the audio. It sounds like you are speaking from a tiny closet, while what you want is to sound like you are speaking from a large open room.
I would recommend even the cheapest condenser microphone.
If you dont mind my saying, while technically the iPad video is quite good in terms of quality due to the setup and a good write-up, i think you could have more effectiveness if you work on your voiceover skills or find someone that can make it sound more appealing.
Also, i'd shorten the video down to showing the highlights of what your app can do, rather than how to do it - at least if you're intention is a marketing message anyhow.
A 30 day free trial of adobe after effects and a $20 template tweaked to your needs, along with $30 for professional voiceover, would have moved you to something that would be very close to what apple does.
And would probably have got you there a lot quicker.
I'd like to add that it's possible to lock focus and exposure (not sure if also white balance) by tapping and holding on any spot in the "viewfinder".
Also, see the full frame in the internal camera.app, just double tap the screen and it will zoom out of the cropped mode. (while still only using a middle part of the sensor, though, apparently to allow for the anti-shake to function).
My poor mans rig would be green paper covering the screen, then load in the directly recorded video stream using green-screening in post production. It would give a perfect clarity image.
I guess the sides of the ipad screen would still reflect, so it'd look a little "off" unless your fingers are kept perfectly between the camera and ipad at all times...but that could be achieved.
I'd try green background instead of white and remove it in post, that way all shadows can be removed easily.
In my experience, glare was the most difficult thing to address in making a live iPad demo video. The black plastic sheet with a hole in it they came up with here is an ingenious solution.
Many app videos (including my own) just end up screencasting the simulator. I originally avoided that since it seemed like a cop-out, but then I noticed it in a lot of other app demo videos.
Live demos are also tricky if you have pets, though: http://www.youtube.com/watch?v=BIG6rPvfKnw