outside of pricing, xoom did alot of things right, sorta...
A year ago, the iPad was the only tablet. Apple could have been so greedy as to charge $799 for the opening model and sold out but Apple charged only $499.
Apple could have raised the iPad 2 base price to $599 and they would have still sold out. But Apple would not be greedy. Apple stayed at $499 and the lines still seem insatiable.
Motorola did price at $799 and then $599.
The Xoom had every spec it needed but one. Price.
Now comes the Transform at $399 matching the $599 Xoom spec for spec. The Samsung Galaxy 10.1 has all of that but is thinner, lighter, and smaller than even the IPad 2 and only $499. See the specs:
Comparison Chart: Xoom, Transformer, Galaxy, TouchPad
Xoom owners needed Motorola to sell the millions of units it should have sold, not 100,000. Failed units get less attention for ROM's, apps, and accessories.
All of us needed the Xoom to be a success. Google bet everything on the Motorola Xoom, not allowing others tablets to have Honeycomb even now. We needed the Xoom to cut deeply into Apple so that it could reverse the iPad tide.
Instead of making a foothold against the iPad, the Xoom only solidified Apple's strong-hold.
The failure of the Xoom was a failure for Android. Google can never again bet everything on one company. Googles strength is in their diversity.