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The Xoom was never an option for me. I sold my ipad 1 last year once i knew the Ipad2 was coming this year. For reading (aside from my sony 650) I've not found any device or software that rivals ibooks for an overall positive reading experience. As far as I know, there are no comparable options in the android market. Even if there were, I wouldn't settle on a honeycome tablet until the new galaxy tabs are released this summer. They are the first android tablets to offer point for point challenge to the ipad market share.
That said, I haven't yet purchased an Ipad2, mainly because I want to see how these new tabs do this summer; however, if there really no "ibooks" like reading apps for android, or at least something that allows me to double tap words for dictionary or make notes, then I guess I will be going for the ipad2. On a decent screen with comparable weight, I don't see any reason why reading on an android tablet (in portrait mode) can't be as decent as reading in ibooks, presuming there is an app I don't know about that is like ibooks for android.
PS: I really like the browser in honeycomb but I don't think there is a way to archive web pages for later reading when offline or something. I know I could do that on the ipad but I don't recall if that was using an app or a built in feature.7
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