If so – what product does this best? Please speak from personal experience.
If no product currently available – Is there a way to accomplish this with existing tools and utilities?
No, you can't. The only touch based input you get on the ipad is from the ipad screen. You can do a screen out simple enough, but no input other than a bluetooth keyboard.
You can play mobile apps on a PC with bluestacks.com. So if Smartboards are Windows or Mac based only, there are 750,000 mobile apps you can use.
Some of those 750,000 mobile apps will have iPad equivalents.
This can be achieved with an iPad and desktop application called Doceri - A Smart branded Smart Board isn't even a requirement, this software will work with any projector, electronic white board or interactive pen projector. (i.e. Epson Bright Link, StarBoard, the dreaded Mimeo, etc.). The interactive board / projector is only required if you want to interact with the screen on the wall in addition to the iPad.....else wise any display or projector will do the job.
Alternatively, you could use any white board type app from the app store and wirelessly mirror your iPad 2 to a projector / tv so long as you have an AppleTV-2 and wifi router.
If however you want to use the full potential of Smart Notebook software, and have the need to have multiple ipads interacting with the Smart Board at the same time (i.e. more than one student making use of a section of the Smart Board from an assigned iPad) you will need the Smart Bridget software on a resident PC running Smart Notebook connected to a Smart Board, and the Bridget App for iPad.
Yes but you cant use the touch-screen function. You have to use the built in touchscreen of the ipad. You can only display the the screen of the ipad and to do that you need an apple tv and a display compatible with it. then you can use the air play function to display your ipad's screen.