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The Tab is positioned as a high-end tablet. For example, it is likely the only 7" tablet available this year with a 1024x600 screen. The 1GHz Cortex A8 processor may soon be blown away by the Tegra 2, but current inexpensive Android tablets are clocking in at about 600 MHz.
It may still be too expensive to sell well off-contract, and I am not convinced that many will be sold on contract. Tablets are not cell phones, and if you also have an Android phone you will be better off tethering the tablet than buying a separate contract.
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