Consumer Reports has given the Xoom a very high recommendation in their tablet comparison!!
As you can see from the image (below) it actually comes-in tied for second place (overall score 78)... not a bad showing in anyone's book. I believe most people who have handled various tablets would probably agree with CR on this one. 2010 was the year of poorly performing Android tablets attempting to enter the market but offering little bang for the buck (MobileRead forums are literally filled with reviews and opinions about such devices). The Xoom is the first to compete with quality equal to the iPad.
The biggest strike the Xoom had against it was the original $800 price, which crippled it as it came from the gate. They have lowered the price somewhat now, but if they are to truly reach large sales figures, they need to bring the price down obviously lower than an iPad. Apple has always had a reputation of high-end products at high prices. This is stuck in many people's head. They feel that if Apple is charging $500, then it only makes sense that the competition charge $350 to $400... and this is for devices of equal quality and build, not the cheap offerings we've found in this price range throughout 2010!
I do commend Consumer Reports on their comparison. I have spent much time handling and using the same devices included in their article, and their conclusions are very close to my own (for the most part). I personally attempt to be non-biased, and I feel they have been equally unswayed by brand or OS.