Busted iPad - where do I go from here?

So I had a bit of an incident with my iPad last night. I had a bottle of milk in my backpack, and kind of assumed it was watertight - these things have to ship in far worse conditions than I put them through, right? - but, as it turns out, I was wrong. I'm an idiot. I can deal with that.

I've now "got milk" all up in my dock connector.

Last night, it was really finicky, with the touchscreen sometimes not reacting, and random touches occurring all over the screen. My first thought was to turn it off, which I tried, but it immediately kept turning itself back on.

Overnight, it fixed itself up a little bit. The screen works fine, and I managed to read The Verge as I woke up this morning. But it won't take a charge. It's sort of like watching it slowly march toward death: I know that once its battery wears out, the chances of recovery are about... well, nothing. My baby's going to starve to death.

I've got AppleCare, but I know that that does me absolutely no good here - if I'm wrong, I would love someone to correct me on that.

However, my best option at this point is probably replacement. The iPad 2 is sleek, but rumours of an iPad 3 keep swirling. So, should I buy a replacement iPad 2, or wait for the iPad 3? Or do I have some sort of other option?