I'm not sure what the motivation to ask the question "are they too expensive" comes from, when tablets (in generalities) are one of the hottest selling segments of the computing market right now. Can you imagine how long a marketing guy at Apple would have a job if he stood up in a board meeting and suggested that the iPad was too expensive...all while they're selling them by the millions.
Now if the question were different, like "is tablet 'x' too expensive", then it might be an interesting conversation. I've seen several new tablets poised for sale at costs HIGHER than the ipad...which seems like a ridiculously short sighted move. You don't enter a market with a "me too" product priced higher than the established leader (unless you're Apple), unless you have something markedly better to offer. And frankly, "it's android" doesn't rise to that level.
Well, the Xoom has two cameras, a bunch more RAM, a dual core processor, will get a free upgrade to 4G "when its ready", and is only $70 more than the equivalent iPad. Plus Android Honeycomb looks like a solid OS, so that should be fine.
Where that reasoning falls apart though is that Apple isn't going to sell the same iPad forever. They have got to have a new one coming out soon, and they will certainly either keep pricing the same or lower it.
Also, as you stated, Motorola is not Apple, and no matter how good your product is, you cannot compete on features alone with Apple. Most people don't care if they get something "better" than an iPad or iPhone. If they have the money for the apple product, they'll be totally happy with it. They'll only look at something else if its cheaper. Then they might be very happy with the purchase if its good. But I just think regular people don't bother trying to absolutely maximize their purchase. They go for good enough, which apple tends to satisfy safely. (note that i don't expect you all to be these "regular" people i speak of)
So I guess I agree with you. I think their pricing is dumb as hell. But I also think it makes sense from a value perspective. Its just that the market isn't operating on a pure value perspective (or they put lots of value in the "Apple" name).
-Taylor