Well, that is much better.

It turns out that I owe the people over at Dragon Dictation an apology. It turns out their software was not at fault after all. Instead, my wireless router configuration was to blame. After changing my wireless channel to a different one (a tip I found on Apple’s forums) the iPad connectivity issues all went away.

Dragon Dictation is now able to handle full paragraphs of spoken text with no connection issues. All of my other apps are acting better as well! Woot!