And your observation is based on what? iPad 2 launch? iPhone 4 was met just as enthusiastically and yet Android is already more popular. One million people buying iDevice on a launch day does not make that much of a difference on a global scheme.
And yet on March 2 we got this (and a lot more from lilo777):
...With half the RAM, most likely sub-par GPU performance (not NVIDIA design), sub-par screen and camera resolutions, phone-optimized OS, no 4G how come iPad 2 is equal to XOOM?
And this (from WhySoSerious who actually started a thread entitled "iPad 1 vs iPad 2 vs Xoom" which seems to have been WhySoSerious's attempt to prove the superiority of the Xoom):
i agree with this [lilo777's statement from above]. Xoom has a higher res, more ram, better camera,
more powerfulf gfx, 4G......so how is Xoom = iPad 2??
But now we learn this (from Ars Technica
http://arstechnica.com/apple/reviews/2011/03/ipad-2-the-ars-review.ars/5):
...As we saw in the previous benchmarks, the iPad 2 has a significant increase in floating point performance vs. its predecessor. This was really pounded home by the LINPACK tests which showed the iPad 2 besting its predecessor with a 292% (~3x) improvement. We ran this test on the Motorola Xoom running Android 3.0 and the Samsung Galaxy Tab running 2.2. The iPad 2 shows a surprising 336% improvement over the Motorola Xoom on its NIVIDIA Tegra 2 platform and a 724% increase over the Samsung Galaxy Tab’s 1GHz “Hummingbird ARM” processor...But the only factor we can think of that would explain such a boost in LINPACK performance vs. both the original iPad and rival Tegra 2-based devices is that A5 must have full support for ARM's NEON vector extensions (the ARM equivalent of Intel's SSE instructions). The NEON extensions, along with the larger vector FPU (VFPU) to support them, are included by default in the A8 family, but are optional in the A9. NVIDIA's Tegra 2 opted for the smaller, lower-power, but weaker ARM FPU, while Apple seems to have included the beefier NEON VFPU in their implementation of the A9. Clearly this is the way to go, and we can expect other ARM SoC vendors to follow suit...
I can't confirm the technical truth of what Ars says, but it's certainly adding to my doubts on the ability of the Tegra 2 to compete with Apple's A5/iPad 2. Frankly, I'm beginning to wonder whether NVIDIA has just "dumped" the Tegra 2 on the market at bargain prices because it realized that the chip was going to be uncompetitive. Maybe that's the main reason it is going to be used in so many Honeycomb tablets, it's cheap and it's available.

The Tegra 2 would have been great last summer, but now it's looking more and more like it's DOA.
Of course, nothing says that this situation won't change in another six months or a year, but that's the future and not now and for now it looks like Apple has the best tablet and it kind of looks like the Xoom and other Tegra 2-based products are going to fall well short of the "mark" (i.e. the iPad 2 and the iOS ecosystem).
I also take objection to the persistent claims that the iPad's iOS isn't a "real" tablet OS but that somehow Honeycomb
is a tablet OS because, well, it must be (?) since Google says so. Point of fact, iOS and Honeycomb/Android are merely different, but that doesn't mean that one or the other is automatically
the very definition of a tablet OS. Moreover, versions of Android before Honeycomb were widely regarded as being a terrible fit for tablets, while the iOS running on the iPad seems to have done very well indeed. Thus, Google had no choice but to modify Android so that it could be used on tablets, and now some are trying to use the failure of previous Android-based tablets as some type of "proof" that Apple's iOS can't really be a tablet OS (since Google had to make major OS changes for their tablet products while Apple did not).
Frankly, I think the tablet OS situation can be described more correctly by noting that Honeycomb may be the answer if you think a tablet OS should be like a touch-enabled PC running Windows. Otherwise, if you think that a Windows-like experience isn't the answer then maybe the iOS is a better fit for tablets.