Compared to what? a 64GB iPad (3rd generation) is $649 and a 64GB Surface tablet is $699, but the surface comes with a cover that includes a stand and a keyboard AND a customized version of Office. Both will run anything you can find in their App Store -- granted, Apple's has a bit more at the moment, but that could easily change. So, to me, the Surface seems more like a bargain than the iPad.
- too confusing (it's obvious that the iPad won't run Mac OS X apps, it's not obvious that the RT Surface won't run Windows apps)
Obvious to who? When I first saw an iPad I expected it to share apps with a Mac. At least the Surface will do that, since the Win8 desktop can also run things from the App Store. I don't know Apple, so the Mac may be able to access the App Store, too, which would still leave the Surface as a better bargain because of the included extras (heck, it even has a full-sized USB port -- does Apple ever use standard ports or devices?)
Too late like AMD getting into the PC CPU market? Too late like Android coming out after the iPhone? With the Microsoft behemoth behind it, Surface may stand an actual chance. Unlike the Zune, which no one really wanted to begin with, a significant number of people have been looking/searching/waiting for an alternative to the Apple-dominated tablet market. Personally, I'm happy with my Xoom, but I can easily see the appeal of Surface for large number of people who grew up on Microsoft-based systems.
A bit of disclosure: I dislike Apple because I seem to be incapable of using things without thinking about what I'm doing FIRST and even attempting that makes Apple products much more difficult to use. I dislike Microsoft because, as a developer for [mostly] Microsoft-based software for the past 30 years or so, I've felt my life was controlled by their whims on changing OS and compiler features. I don't like Windows 8 because my desktop is *NOT* a phone or tablet and I think it is wrong to assume all devices benefit from the same interface -- that is just plain dumb thinking.