I just tried to update my iPad 3 & iPhone 4 to iOS via iTunes 10.7 (cause its faster than the OTA) and it would not let me update it. iTunes told me that both of my devices were ineligible for the build.
I know that for the iPad you have to have at least 2.8GB free for the update, which I did, and I got that same error.
Is anyone else having this issue? If so, is there a fix out there for it?
I didn't get that issue, but I don't see why iTunes update would be faster than OTA. If you have wifi, it should download at the and speed on both devices. Mine took about 10 minutes to download over OTA and about 10 to install.