iOS 7 is a pile of manure, but it should definitely not cause any overall dysfunction of iPad 3. I have an iPad 3 myself. iOS 7 makes it look ugly, and the user experience is no longer smooth, fluid -- it makes you feel as if you were using an early Android version. (For example, when swiping down your finger to reveal Spotlight Search, it's never smooth here: there's always an ugly jerk before the search field appears; that sums up the iOS 7 user experience for me.)
But, the iPad by itself is still perfectly usable, especially when you're inside an app -- away from iOS 7's butt-ugly interface, and of course away from Apple's hideous and lame default iOS apps.
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