Does anyone know if that picture is just an iPad with the screen photoshopped to Android or is that what it actually looks like?

It is absolutely a picture of an iPad, since you can see that it (the iPad) has been stretched out to accommodate the screenshot. The square on the home button isn't a square anymore.

its not. They just copied the look. (Check out the epad, and the apad and other versions of this pad)

Then why do all the hardware buttons (sleep, mute, volume, home) exactly match the layout of the buttons on the iPad? It looks exactly like a stretched out iPad with a mocked up screen shot.

I wouldn't be surprised if the product design spec was a stretched-out image of an iPad :-)

All of these cheap Android tablets look like the iPad.

Probably not if you put them side-by-side though...