After I started this thead... I bought myself an Apple TV... and using AirPlay I no longer use the HDMI dongle.
I mainly use it to stream movies off my computer via Air Video.. then from Ipad to my TV.. For $100 for Apple TV.. it was totally worth it to eliminate the hdmi cable and the clutter it came with.
Another positive is that with Apple TV, you can play your videos on to your TV using Air Video and still be able to use the Ipad for anything else.. like safari, games.. and etc... the HDMI cable can't do this....
Granted it does not mirror the ipad screen... Apple TV hit all of my objectives...