Having downloaded Alice for the iPad, it looks more like the app has revitalised Lewis Carroll's work, and made it fresh and interesting for a new audience -- It's certainly a more sensitive and respectful adaptation than the Tim Burton movie.
Obviously there needs to be a balance between text and images, but I can see parents reading this Alice app to their kids, with the physics-simulations being an attractive bonus to keep them entertained. Now that books have to compete with DVDs, TV and the internet, what's wrong with a little novelty here and there to coax kids into engaging with the written word?
Far from "ruining" reading, it looks more like Alice for the iPad is the first book app I've downloaded that actually makes sense on the iPad. Right, I'm off to play with the Caterpillar some more.