There is an element of truth that one selling point of Apple the brand identity; buying into a culture, if you will. Putting that aside, the iPad still brings a lot to the table.
The Xoom and other android tablets could out-spec the iPad 2 on paper, but in actual usage even the first iPad is smoother, more reliable, less buggy, and faster than the Xoom. That's one advantage of having efficient OS and software that is designed to run on a finite variety of hardware. More importantly, the iPad has many more cool, great-looking, and useful apps. When the iPad first came out there weren't many apps optimized for the tablet form factor, but that quickly changed. The same will happen with Android, but the difference is that the iPhone already had a ton of cool, good-looking, and useful apps awaiting optimization. Unfortunately, Android phones still lags far behind in that department.
Not to mention that the cheapest iPad has more than enough storage for 99% of people and it already sells like gangbusters. An Android tablet that retails for more than the 16GB iPad is basically bringing a knife to a gunfight.
I have to agree with you there. that's why in my 1st post i highlighted "on paper". Real world use is key, and for what it's worth, the iPad does run smoother than most Android devices. What is needed is a video that shows a side-by-side real world usage comparison of the 2 tablets in action. We will just have to wait until around the 11th when a video or 2 will pop up with said comparison.
As for the price, like i said before, I can get a Xoom cheaper off-contract, but 95% can't and that is what will keep the Xoom from passing up the iPad2. Eventually the price will drop, but there will be more tablets out by then, some with specs that were made to bury the Xoom and the iPad2. Technology has a way of doing that, evolving faster than the consumer can keep up.
P.S. - still getting a Xoom lol