As others have stated already, this doesn't compare against an iPad so much as RIM PlayBook or the other 7" tablet devices on the market, like Samsung Galaxy Touch, or the many cheaper no-name tablets.
They will own the 7" space. I think for some people this will be a great device. This is the first other tablet that I believe will see updated on a regular cycle for least the next 5 year. Not the Samsung / Motorola 6 updates in 6 months desperation cycles. Real legitimate updates to a successful product every 12-18 month.
I love my iPad and my kindle. I plan on pickin up the $99 touch when it comes out.