If it costs $300, it's a real competitor. If it is $500 or more, it's nothing. Waiting for price...
It's most likely going to be $500 or more - but it does a LOT more than your run-of-the-mill Android tablet. From this keynote - it looks like you'll be able to use standard Windows 8 apps on it - that alone is a very HUGE deal - ESPECIALLY in the business sector.
I love my iPad - I won't get rid of it - but I can't say that MS's offering isn't damn near better than every other iPad competitor out there...
IMO - these are actually two entirely different beasts - DisplayPort, TRUE USB, physical keyboard, e-ink technology - come on - nothing else out there even comes close.
I'm not sure this thing is meant to even be an iPad competitor - just because the form factor appears similar, it doesn't mean we're dealing with two directly competing products...
EDIT - just think about one piece of software - MS Office - in business, it's everywhere - and it looks like this thing will handle the EXACT SAME VERSION of MS Office as Windows 8 PC's - the value in that alone makes it better than every single Android offering...