This summed it up for me: "The Iconia A500 isn't any different from other tablets; you're paying more than you would for a better-performing notebook."
If I'm to pay a significant fee for a niche product, it had better be really good at a specific purpose. Better at it, in fact, than other, cheaper products. I got my kindle despite the fact that you can read ebooks on computers, smart phones, ipods, etc, because it damn well did a great job of being a book. It did it better than these other devices. The form factor combined with the great battery life and easy on the eyes screen made it worth it. Plus, you can read it in sunlight.
What then, is the purpose of buying a tablet over, say, a netbook? The tablet is geared at media consumption, but it doesn't do a significantly better job of that than the netbook. In fact, it does a worse job of it, allowing me fewer media options, while simultaneously costing more and having less storage, with an OS that won't run proper, useful software.
Maybe they'll get better, but right now, they're overpriced toys.