Excellent point on when... but that's a different argument since it will be released later this month per the leaked promo. I know the specs of the Xoom. I don't know the specs of the iPad2.
Personally I don't think the planned Xoom is a good deal. It is too expensive (for me...) But this has to be Moto's first round competitor priced towards the flagship iPad2. That is the goal. If you want a low tier tablet sub-$500 go somewhere else for now or wait for a stripped down Xoom. I'm sure it will come later since EVERYONE is posting about the price.
-All IMHO... I in no way have any product in sight.
Tell me where you can get a dual core 32gb 3g+wifi ipad with a higher resolution screen, hdmi out, two cameras, and a usb port for less than $800 and I will say this is a bad deal.
This is the flagship iPad2 competitor out the door before the iPad2.