Answer: The iPad3 has 3 main features over the iPad2, higher resolution screen, faster processor and 4G (if you by the 4G version and only in the USA,) the faster process would be nice in a group setting, the higher resolution screen now is not a big thing but later with more apps taking advantage if it, maybe. for kids fidelity is not as important as interaction so higher resolution will not be that valuable to your end users. because you are in a large group setting, you will have to switch apps (you could benefit form a faster processor ) and likely have more apps them a single or small group user, i would say get an ipad with 32 or 64 GB of memory, if you can swing the iPad3 with a faster processor that would make app switching faster. I also suspect they have made other hardware changed to make app switching better but i have not tested this thought. If you have to make the choice between faster processor and more memory, in your case more memory would be better (and i never say that for anyone expect big group users). So iPad 3 with more memory if you can swing it, iPad2 with more memory, both would be a good choice.