Much as I’d like to see Xcode on iPad, I doubt it will happen; at least, not with the current Xcode.
Xcode is huge, it’s bigger than most games. A lot of that size, is an aggregation of tools, built up over a couple of decades.
Replacing it with a rewrite, would be a major operation, but would probably be required, in order to work on iPad.
Most of its size, I think, comes from the device emulator images.
You can configure an iPad up to 2TB. I don't think storage if going to be the blocker