Yes, you can watch vimeo videos on your iPad, but not without exception.
Vimeo announced in January that it was releasing a beta version of an HTML5-based player as an alternative to its Adobe Flash based player.
Vimeo states that approximately 90% of its videos from the last year or so are available via the HTML5 player.
The HTML5 version of video comes is not without its pros and cons, however.
- no-wait loading, player loads instantly
- jump anywhere in the video without waiting for buffer to fill
- smoother playback
- only works on Vimeo.com, embedded Vimeo videos are still Flash and won't work on the iPad
- no full screen (yet)
- potential bugs -- Vimeo warns this is a beta and might have some surprises
If you want to use the HTML5 based player on Vimeo.com, simply click on the "Switch to HTML5 player" below any video.