It could happen but I doubt that'll happen anytime soon. For now Apple's grab on market is too strong and the mind share is mind boggling. More importantly, they have a critical mass lead on the number and quality of apps available, a proper ecosystem if you will.
I know some love to bring the Macs as a historical example but there's one crucial difference. The iPad is just so darned cheap compared to the original Macs. The original Macs cost upward of $2000 in 1980's dollars, which would be like $5000+ today. Even if an iPad costs more than competitors by $100, the difference is small enough that consumers will gladly spend $100 more to get what is in their mind a much better proven product from a premium company. Also Macs didn't have the kind of lead in software enjoyed by the iPad initially. In fact it was precisely the opposite as the IBM compatible PCs held many of the "killer apps," in Lotus 1-2-3, dBase, etc.
Plus it doesn't look like any of the competitors can beat Apple's pricing in a meaningful way. i.e. they cannot offer their products much cheaper unless it's made in a significantly worse fashion. For example the Archos is $200 cheaper but it's a much inferior feeling product. The Galaxy Tab uses a smaller screen and reportedly carries significantly lower material cost yet released with a similar price tag. All they could do is packing in more features and hope it draws consumers. However the same strategy has been used for almost a decade now and it hasn't killed off any of Apple's recent success in notebook, iPod or iPhone.
I don't really disagree with anything you say here, it all sound quite reasonable, as you say they have a giant lead, not just with the device but also with the marketplace.
I guess it depends on two things.
1: For Apple not to get lazy, too cocky/smug, thinking they don't have to try very hard as they are untouchable, and or keep locking things down to the point of annoying people too much.
2: What will Android do, and the 10, 20, 30+ companies that produce tablets do. Ok, some will be cheap and nasty, but others will be very nice.
If enough Android tablets get made, by enough people, the BIG High Street Names that people know and trust, Sony, Toshiba, Philips, HP, Dell, Samsung, Asus, etc etc. At a nice enough quality, at the right prices, they will sell, given that they will without question sell, then that will of course create a fast growing userbase, it has to. Devs will naturally with to take advantage of this, and who would blame them? Which will pump up the number and quality of apps, new of which will get around, which will make more people look towards and android device...... and so the loop goes around.
This could be a VERY big loop with a world of major companies, out speccing each other over the next few years in all ways, and of course, trying to offer the best value they can also. High end and low end models.
Apple and it's apps, with it's one year lead is going to need every ounce of innovation they can to stand up against, what could..... only COULD be a barrage of devices from a mass of other companies in the next few years.
Which is why I said, they better not just think they can take it easy and not really bother, as at the moment they are a lap in front, but the race proper is just about to begin, and there are some dam good other runners at the starting line.
Just one possibility of course
