Has the Image Trace feature been added? I can't seem to locate it. I thought an earlier demo of the app showed similar functionality.
Yes, you can do that. However, with Illustrator on iPad, the approach to the Image Trace feature is slightly different compared to the desktop version. Please check this link for more details.
This is not what they are referring to with this question. The Image Trace/Live Trace function is the one thing that seems to be missing from the app, drawing over an image is not the same thing at all and would take forever. I just wanted to confirm that there isn't a way to press a button to image Trace and then expand?
You are correct, there currently is not a live trace feature in the iPad version.