Better Viewing Experience: iPad to tv or Apple TV?

I'm brand new to Netflix and just watched my first few movies on my iPad. Playback paused a few times (I assume due to buffering over my wifi network?) and video quality wasn't the best.
I'd like to watch Netflix streamed movies on my TV and I'm wondering if I'd get a better viewing experience (streaming without pausing and video quality) with Apple TV v. Streaming from iPad.
Does Apple TV have internal storage to buffer streamed video in order to eliminate pausing? Or Can I expect more consistent streaming with AppleTV simply because it's connected by Ethernet cable v wifi that the iPad uses?
Lastly, will the video quality be any higher (sharper) with AppleTV v. iPad?

The new Apple TV has some storage. However, as you said if you use ethernet it should work/play better. The TV may be a little better picture since it is 720p (1280×720) while the iPad screen is only 1024-by-768.

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