The mistake people are making is comparing the XOOM to the lowest cost iPad. It should be compared to the 32GB iPad, at very least. A more appropriate comparison would be a [XOOM + 32GB SD card] versus the 64GB iPad.
The price for the XOOM tracks very favorably with the price for the iPad, even when comparing to only the 32GB iPad.
As for being "unproven"... this is EXACTLY what people were saying when the Nexus and Droid were first announced. Now here we are, barely over a year later, and Android dominates the mobile OS market. iOS is THIRD (ignoring Symbian). At last look, Android devices were being activated at a rate of 300K units PER DAY worldwide. Apps are growing at a rate of 30K per month. Last look for apps clocked Apple at about 300K and Android at 230K. The forecast is Android will surpass iOS in apps in the second quarter of this year.
Almost every indication and market analyst says far more Android tablets will ship in 2011 than iPads. And remember, most of the Android tablets will not be released until May/June!
Look, I'm not trying to bash Apple here. I had three iPhones myself and loved them, before I switched to Android.
I'm just holding up reality. If you like/love/trust/whatever Apple, great! It's a solid platform with a solid future. You won't go wrong by purchasing an Apple iPad.
But don't kid yourselves into thinking Android has not become the world's dominant mobile OS. Don't kid yourselves into thinking iPad is in any way cheaper, more refined, less buggy, etc, etc, etc... than an Android tablet, like those being released by Motorola, LG, Toshiba, and HTC... to name just a few.