There is no rumor to quash here. We knew all along that the iPad 2 display may not be too different from what we see in the current version. More optimistically, we had people speculating a retina display on the new iPad.
However, if you were one of those hoping for an AMOLED display on the new iPad, there is confirmation that Apple shall not be having them on the next generation tablet. Why? Because the company is learned to have placed orders for back light units that will be used with LCD panels on the iPad 2. AMOLED displays typically work without back lights and the latest news would put to rest all speculations that the displays could be AMOLED.
If you are a fan of AMOLED, or rather Super AMOLED displays, then hold back for the next generation Galaxy Tab from Samsung. It should be coming with a 1200×600 pixel Super AMOLED display.