Actually, Android devices sold quite well when priced well. Best Buy had Acer A100 7" tabs for $189 and 10" Acer A500 tabs selling for $229. They had the Asus Transformer up for $250 for Black Friday and currently have it for $299. Newegg sold out on the Toshiba Thrive instantly as did Amazon when they put it up, both at $199. Kmart sold out on their mis-price of the Acer A500 as well at $212 or so.
Android devices can sell. It's just that makers are going to need to realize that people aren't willing to pay the $500 for an Android tablet that they are for an Apple tablet.
That said, I think Google needs to work on it if they want a decent shot at the tablet market. One thing I've been hearing more and more are comments regarding Windows 8 tablets. Even with the atrocious metro UI, the ability to switch to a full-blown OS with plenty of app selection is enticing for many.