The comment boxes allow only plain text. You must enter your own HTML, which most of us would find time consuming! So, no spaces between paragraphs or any other formatting are possible.

Are there any plans to make it more compatible with iPad? Anyone else using iPad? Perhaps my settings are wrong?

No, really, there is:

http://www.cbc.ca/technology/story/2011/02/08/technology-confession-app-catholic-church.html