With the recent iOS 5.1.1 jailbreak, XBMC is finally supported on the new iPad. Unfortunately, for the past few days using the new iPad was an awful lot like using the old iPad. Because resolutions are so uniform on the iOS devices, it was unnecessary to code for imaginary higher resolution devices and so XBMC continued to use the old, ugly resolution on the shiny, new retina display.
However, as you can see from a quick browse of this thread and a casual glance at recent commit history (for e.g. here) by Memphiz, a rapid shift has taken place. As of this writing, both the XBMC interface and video playback should actually support the much higher iPad 3 resolution. Good work Memphiz, and thanks to all the users who contributed to testing.
*Credit to Jordan on Twitter for the Photo.