Here's my thing about the iPad, it's just a giant iPod!!!
Ususally when people say the iPad is awesome, I reply with "so you think an overglorified iPod touch is cool?" There is nothing GREAT about it. I had the iPad 2 for 2 days and returned it. Took it to college with me and people asked me how awesome it was and I told them it was the most dissappointing purchase I've ever made. Came back the net day with a Xoom and people knew I was happy with it cause I was showing it off to everyone. I'm waiting on the Transformer though but maybe will return it for the Xoom later cause I can seriously say I really miss my Xoom.
Here is my thinking when it comes to which tablet people should buy.
If you have ever posted on a tech/gadet site, enjoy tinkering, and getting the most out of your hardware. The Xoom is the way to go, or any of the upcoming Honeycomb tablets.
However the majority of people that ask my advice on what to buy, I would tell them the iPad simply because it is a giant iPod, giving them tons of apps, a basically a non tech approach to some cool tech. iPad is popular because anyone can use it, that in a nutshell is why you me and lots of more technically inclined people gravitate towards the Xoom and other Android tablets.
I spend many, many hours helping and explaining Android phone users that ask questions about some of the basics that while you and I think are easy and they must be stupid... no, it's the fact Android is built more like a full blown OS and simply has more layers and menu's to navigate.
My brother is the perfect example. He works in the banking industry and honestly could care less how his phone or tablet work, what OS it has etc.. He wants to plug it in at night to charge and have it automatically sync up with any updates, apps etc... the less time he has to jack with it the better. The iPad deals with what he needs to do and has apps to handle his basic email and web on the go aside from the BB that is work issued. It's not that he isn't smart enough to figure it out, he simply doesn't care enough about technology to learn. He has 3 kids and little time to spend browsing tech sites as I do. He loves the fact he can call me to help with any issues, but for me the iPad = less phone calls about how to set something up. The iPad serves the needs of many, many millions of people. I'm glad the iPad exploded on the market and pushed companies like Google and Moto, Asus etc.. to make these great tablets for the more tech/gadget/geek centric people that can have fun with what Android has to offer.
I understand the passion for one or the other, but I don't dismiss what each has to offer and what the advancement of both OS's means for us in terms of great product and OS updates. The bottom line is buy what you love and enjoy the technology it brings. As Honeycomb matures and more people find out there are alternatives to the iPad that do in fact run Flash and current web standards, sales will take off and we will have a very healthy and vibrant tablet market to please any and all that want to check them out.