I hadn't even thought about that limit on an iPad before, and am a bit surprised it doesn't offer at least a basic ability to browse the photo library to upload from. May submit a bug to Apple to see what their response is. Now that iOS 5 is trying to improve on the iPad as a standalone device, the request doesn't seem too far out.

Also odd that Android doesn't handle this. Did try it on the Touchpad (WebOS), same issue where the prompt just does nothing.