You are like me. On one hand I'm WOW'ed by the Xoom specs. 1 GB ram, Flash, much higher specs for there camera, flash, and a slight higher resolution. I really would like flash to watch videos on the go when I want instead of waiting when I get home. I would also like to see how honeycomb for tablets works.
Question: What effect will 1GB of RAM have? What is it that you'll be able to do? Not theoretically, but actually, in practice on the Xoom?
Higher specs on the camera are nice, but again, how often will you use it to take pictures vs. the camera on whatever phone you have? Personally, I have not yet come up with a need for a camera (other than facetime, but I don't understand the need for that, either. I mean, really, it's just annoying to have to hold the phone or iPad and look at the person you're talking to.)
Flash well, if you need it to watch video that isn't on youtube or in html5, then you need it. Also, some people just need to use Flash for business or other reasons. Personally, other than not viewing annoying ads, I've never noticed that I was lacking Flash when browsing on the web. Maybe it's just that most big sites are optimized for the iPad.
In short, buy something that will make you happy based on what you want to do with your tablet. If you want Flash for an important reason and can think of something you want to do with the extra RAM and better camera, then buy the Xoom. If you want to have lots of apps and games and you like a smooth user interface, buy the iPad.