I think you will here different suggestions here. It really depends on your requirements and whether it is more important (mandatory?) for you to reduce the size of your app or make it more responsive at run-time.
Are you going to scale the images down one-by-one (meaning that in a view you will have only an image)? Or are you going to scale down a whole lot of images to display, e.g., in a table view? This will impact greatly the user experience...
As to the "every time", you could think about using a cache, so that you only resize each image just once. This would be like an intermediate solution, but again, it depends on your app (if very many images will be loaded, the cache will become very large, so in this case it could be suggested to go for option 1).
Also, the iPad 2 is pretty fast; iPad 1 a little less, so you could also take into account that.
In general, I don't think that scaling down will add much overhead, but YMMV...