As mentioned above, I found the 11 & 12 strength settings, thanks to Boidhre. I was in the "Medal Challenge" mode, and didn't realize I could back up one more menu and create a "normal" game, which has the 11-12 options.
I suspect the 11 & 12 strength settings are considerably stronger than Lvl 10, but I can't say for sure, because I haven't played Lvl 10 on the new iPad with more processing power than the iPad 2. But playing casually against Crazy Stone on the new iPad, I lost one game each on Levels 11 and 12. (I had made a comeback on Lvl 11, and missing an endgame point lost me the game, I think--CS won by 1.5). In any event, I think level 12 is at
least KGS 3k, and perhaps even 1d-2k. After playing more games, I'll report back (unless I was playing worse than I thought). Playing these games is sort of bittersweet--I want to win, but I would also like to have a program on my iPad that is at least slightly stronger than I am. But then I want to be stronger than it is

. Neverending cycle.