I don't understand the concept behind making a Tablet that costs MORE than the iPad. The point of Apple is that you pay for the little logo on the back. You pay for the sleek lines of the product and smooth graphics of the OS. You do NOT pay for the hardware. If you cannot create a cheaper tablet, you will not compete with the iPad, simple as that.
When Joe Schmoe walks into a store and asks for an iPad, he pretty much wants an iPad (even if he doesn't know what "tablet" means). Your only hope to convince him to buy something else is going to be price. "Have you considered a Motorolla Xoom, it has similar hardware specs, runs Android (so it has hundreds of thousands of apps Too!), and its $150 cheaper!". THAT might be convincing, but saying the exact same thing, except that its $150 MORE, and you'll never make that sale.
You know how grocery store generics work? They work on the advertising of name brands, and their own lower price. "I want Kraft Mac and Cheese (R)!" says your little kid. But you get to the store, and generic "Macaroni and Cheese" is half the price. Unless your kid is in the kitchen with you, they won't know the difference, so save yourself that money.
It's the same with technology. Most people wouldn't know the difference. Windows versus Apple versus Android? I would like to see stripped-down versions of the OSes go head to head. No Apple Logos, no Windows logos, etc... No IE and Safari, just Firefox or Opera. Put generic buttons on there, and see just how many people can tell you which is which. I'm guessing much of the population couldn't tell you the difference. If it browses the web, takes pictures, edits documents, lets them update Facebook and play Angry Birds, it's a "computer", and that's all they care about.