I’m not sure this is a great idea, but it is certainly a nice option:
Once you’ve got the files uploaded to Dropbox, though, how do you get them into iBooks? Just find the PDF in Dropbox on your phone, hit “Open With” and choose iBooks. It’s easy as pie, and your PDF files will automatically sync through Dropbox, too. You don’t even have to bother plugging in your device or using iTunes. Brilliant!
[From How To: Read PDFs in Apple's iBooks with a little help from Dropbox]
Who’s up for giving it a spin? Oh, right, me:

The PDF intro for Dropbox on the iPad.
How about Create Your Own Blog (the epub version from this same PDF doesn’t look nearly as good):

And in your library you have now a “PDF” button to go with “regular” books:

I haven’t tried any of the other features in iBooks 1.1 (like notes, etc). I’ll be interested if I can import the DRM-ed versions of the books I bought from Kobo. Right now I have to remove the DRM to read them in iBooks so I read them in Kobo’s own app (which is pretty good actually). But from just checking the couple PDFs in iBooks. I think I could use it for reading.
Update: The “Notes” feature only works on books. No annotating PDFs in iBooks. Argh!
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