A few of the key specs are 1.3 pounds, .34 inches thick and 10 hour battery life. The iPad absolutely clobbers the competition in those specs. Not to mention the polished operating system and ecosystem. And putting an 8 megapixel camera on a tablet is just dumb. The main things the camera will be used for is video calling and taking an occasional picture to text or email. Sending a 5 Meg file in a text is just lame. A low-res camera sometimes has it's place and on the back of a tablet is one of those places.
If you love the specs on the Xoom then by all means run out and buy one. But don't be surprised if when earning season comes out Apple announces they have sold millions of iPads while Motoola announces only a few thousand Xooms sold. Most sane people will prefer the specs on the iPad by a huge margin.
I watched Steve's Keynote on the IPad 2. It was actually quite funny. Steve seemed very amused that competitors don't have a clue. That they look at this as a tech spec thing when all they really need to do is leave out Flash for good battery life and develop a decent OS that performs well with the latest tech. They don't need a ton of Ram or 4G which isn't even a widely used standard in the US yet. They don't need 12 megapixel cameras that waste battery or the most expensive highest resolution screen, just to read a better spec. sheet. Steve almost seemed perplexed that these idiots just don't get it, he's probably wondering how they've lasted this long. Of course as the competition knows now, it's not nearly as easy to seamlessly put together a Tablet with an OS and ecosystem as they thought. Only Apple can do that.
Time will definitely an important factor for a new comer. Xoom is based on open source, talented techies will soon flood Honeycomb & Android with apps that are hard to beat. Look at Google how it started. Linux takes a huge chunks in server farms.