The same way XMas eve is about sending texts and ecards with holiday wishes, the day before any major Apple launch is about making forecasts about what it will be.
Mine are more modest(since I prefer things to exceed my expectations, I keep mine rather low). I don’t know if there will be any retina display. Could be, because the technology exists, but I wouldn’t bet more than a couple of $ on it.
I think that the “We have something you need to see” in the invite was more about Apple TV(as confirmed by rumors about Apple TV shortages in stores). This would be the explanation for the long delay in launching iOS 5.1 – it was supposed to come out in November but obviously got delayed, and I think deep Apple TV integration is the reason. The part about “and touch” in the invite was obviously about iPad, but the lack on emphasis to it would point towards an incremental, rather than revolutionary, update.
So: iOS 5.1, a revolutionary Apple TV that we will actually want to get, and a better iPad that at first sight might disappoint us, just like iPad 2 did before it and iPad 1 before that.