I just bought the Xoom a few days ago. I had considered purchasing an iPad 2, but instead of more-or-less duplicating my previous iPad purchase, I thought I'd try something new. I have mixed feelings, but overall I am quite happy with the purchase.
The Xoom hardware seems sturdier to me, but that could just be in my head, and the device feels more powerful to me. The Xoom has a larger, higher-resolution display than the iPad, but the iPad has a much higher quality display. That's an issue for a device that is, essentially, one big screen. One aspect in particular that seems far superior to iOS on the iPad is web browsing, which is likely my most frequently-used feature of ether device. The Xoom blows either iPad away in this regard. It offers near desktop-speed performance in its included browser, with none of the checkerboards and frequent page reloads of the iPad. I'm not sure if this (page reloads) is primarily due to the greater RAM, or the fast speed of the browser; perhaps it reloads so fast it doesn't matter. I don't want to restart the whole flash debate, but I watched quite a bit of flash-based internet video and the device didn't get hot nor did the battery take a disproportionate hit. In fact, the battery life has really been great...two very long evenings of heavy usage, and there's plenty to spare.
Multitasking is also quite nice. One of the first apps I downloaded was a (free) great radio app, and as I was listening to the radio I intuitively started web browsing and going back and forth between a few other apps and it wasn't until I received and replied to a message from a friend that it occurred to me that I was having a really cool and full mobile computing experience. I feel that as iOS and Android (Honeycomb) stand right now, Android offers a lot more potential to serve my needs. To realize this potential, though, they need apps and Apple dominates in this area...not only in quantity but in the overall polish of their top-tier apps. Apple's iOS itself is likewise more polished, and the Android team definitely needs to iron out some of the wrinkles. Not showstoppers, mind you, but Apple clearly had the more mature, stable OS.
So now I have two tablets. I have two computers at my desk, an iMac and a PC, and I can use both of those, but I can't quite figure out how two tablets figure into the equation. I know I'm more excited by the Xoom than I was after I first used the iPad, and I was quite excited by the iPad. Time will tell, but I'm currently leaning more towards the Xoom.