For those who were considering getting a new(er) iPad to deal with this issue - because the issue was causing so much angst with my kids I gave up and purchased a refurbished iPad 3. Minecraft PE works on that iOS (doesn't freeze/crash), except local server multiplayer - the kids cannot see each other's worlds, even though both have the "local server multiplayer" option selected and are on the same WiFi network (one has Android, one has iOS). Just mentioning this in case others were thinking of getting a new iOS device - while it is better there are still issues.
I reported the issue to iTunes as the moderator suggested, but agree with what Vince HIlliard said - what is the point of reporting things here if Mojang doesn't check it? We are following the protocol they ask us to follow, but it sounds like it is pointless if the developers don't even look at the bug reporting system.
My son has 1st gen iPad and also has this issue. iOS is the most current available for this version, according to Apple. We thought it was a memory or resource issue and went in and deleted ALL of his photos and videos to free up space, but that didn't make a difference. Turning off WiFi seems to help, but then the game is in single player mode, and the main reason he wants to play on iPad is so his siblings can join him in his world.
Shogi Cervantes - game locks up shortly after launching if wifi is enabled on 1st gen iPad - I am having trouble seeing how it could be quality of signal. We have a really strong signal in the house, and the tablet is usually used in the same room where the wireless router is located - the tablet should be blazing. The problem with disabling wifi or using airplane mode is with multiplayer. Before the update the kids could play in multiplayer mode with the wifi connection - no problem whatsoever, no game crashing. Although the game works with wifi disabled, the kids can no longer play multiplayer, and that is pretty disappointing to them.