It may be heads and shoulders above the iPad in specs, but if they don't sell it at a competitive price, the iPad will continue to wipe the floor with these other tablets.
Somebody is going to need a loss leader tablet. And one that is not crappy; I mean a high end one like the Xoom. Price it at $499, or even $449, and get people into the ecosystem. Release higher priced tablets later once people have bought into it.
Till then, people will go for the one thats not only cheaper, but has the recognition the iPad does. Everybody knows the iPad. Its tried and true, easy to use, and is synonymous with tablets much like iPods with music players. Hardly any average consumers will know what all "those other tablets" are. A very small percentage of Geeks are the only ones who will buy it at $799, let alone $1199. That being said, I am pretty sure this $1199 is just a place holder price they use on things they aren't supposed to sell yet. I expect it to be $799, although like I said, this is not going to help them take over iPad market share.