I agree. I think the display is great, and I've seen it next to my wife's iPad. Something must be wrong for those complaining about screen quality.
I don't think it's the screen quality per se, the screen on the xoom lacks contrast. Looks very washed out especially on dark/black background. I put my ipad and xoom next to each other, and I still cringe how sucky the the xoom screen is. While the screen on the ipad is not the best, compare to the xoom its still better.
If we can get some kind of video adjustment app (contrast, gamma, etc.), then it might make it better, but I'm not holding my breath. As of right now, my xoom wont be a keeper in my book. Samsung might be the best bet, and I'm not worried about software update, as I can always root/flashed the device.