Earlier quoted context omitted.
Yes but for most non geeks, the Xoom doesn't do much beyond the built in apps, whereas the iPad has 65,000 apps they can use today. That might be different in a year's time but the average user would be crazy to choose a Xoom over an iPad 2 now for that reason alone.
Maybe I'm the weird one, but in nearly a year of using my iPad every day, I've simply found that apps don't matter nearly as much (for me) as they do on a phone. There are a handful of really popular apps like Kindle and Twitter, but those are also the ones that run everywhere. Looking at my iPad usage, there are only about 10-12 apps I use regularly. Most of them have equal or better Android versions (browser, mail,…
Although, for non-gamers, I fully agree with your argument.