I don't think anybody that knows about Usability Metrics takes "Neilsen" that seriously. Neilson is more popular with the 5 user is enough camp while most people dealing with Ux Metrics believe that you need to be testing with at least 50 to 300 users.
He does NOT say that you should stop testing as soon as you have testing with five users, but rather that you should build usability testing into your development process throughout all of its stages, but especially the early stages.
We have moved along way since the simplistic rule of thumb that 5 users is enough. A very good argument in why 10 is not enough is Woolrych and Cockton 2001. They point out an issue in Nielsen formula (1-(1-0.31)^5) in that he does not take into account the visibility of an issue. They show using only 5 users can significantly under count even significant usability issues.
The number of users you need is dependent on how many issues there are, the cultural variance of your user base, and the margin of error you are happy with. Five users or even 10 is not enough on a modern well designed web site.
For example if we assume that designers of a web site have been using good design principles and therefore an issue only effects 2.5% of users. Then 10 users in a test will only discover that issue 22% of the time. If your site attracts a 1 million visitors a year the issue will mean that 25,000 people will experience problems.
The easy way to think of a Usability Test is a treasure hunt. If the treasure is very obvious then you will need fewer people, if less obvious then you will need more people. If you increase the area of the hunt then you will need more people. Most of the advocates of only testing 5 to 10 users, experience comes from one country. Behaviour changes significantly country by country, even in Western Europe. See my blog post here :
It's the normal difference between quantitative and qualitative research. This kind of study is of the exploratory kind, capturing what's going on while the users interact with in this case the iPad for a while.
This study is very useful to use as an UX designer, to see where the potential hazards and weak spots in your design is.
