For $800 you must have been looking at the Surface Pro 3. I don't think an Android tablet is an apples-to-apples comparison. The Surface Pro 3 runs a full Windows 8 OS. It is basically a laptop without a permanent keyboard. The Surface 2 is more like $450. This is much closer to the price range you're talking about.
The real problem with Microsoft's tablet experience isn't the price of the Pro 3. I think it's a great piece of kit and compares favorably to a laptop for many usage scenarios. The problem is the Windows RT used on ARM phones and tables. Specifically, the Windows RT app ecosystem. There just isn't enough going on to make it a compelling platform.
Microsoft is great at making terrible decisions. They could have tried to capitalize on their their existing platforms with good market penetration to bootstrap a great app ecosystem. Instead, they wanted to have what Apple has. They wanted to control everything so they could milk it all for money. Unfortunately, they didn't offer any other reason to get developers and users to switch.
I can't see myself ever getting a Surface or Windows Phone. However, I probably will get my wife a Surface Pro 3 when her current laptop dies.