Once a tech company had analyzed the component cost of Ipad, it was estimated to be around $250. Hence, it will be unrealistic to expect any tablet with similar spec to be sold at $250 or so, not at least until the components price fall further. So for those who are looking for owning a Ipad like tablet for $200 or less, it will not happen in the near future.
Ipad2 is a very polished product indeed, and it has lots of app in the app market. The shortcomings are Apple has intentionally not allowing certain video media format on the devices, such as MKV etc. Hence re-encoding is required. In addition, there is no expansion port to swap in and out the video or even music collection easily. A 9.7" tablet size can be too big for some people.
Now looking at Android devices, they usually support any video media format, and comes with microSD or SD expansion ports. They comes in various sizes and prices. The cheapest tablets are typically made by China and carry low price tags. The cheapest can be as cheap as $150 or so. However, those in these price ranges are typically running on older chipsets and Android 2.x, probably with a resistive 7" screen. And battery life is normally half of Ipad or less. There are also China tablets which run with better hardware, such as 10" IPS capacitive screen, faster chipset etc and cost more.
See below:
http://mp4nation.net/blog/2011/03/the-big-players-chips-in-the-shenzhen-tablet-market/
Three vendors, namely Motorola, Acer and Asus has already launched Android 3.0 tablets, all come with 10" screen with 1280x800 resolution, and better cameras than Ipad2. NVidia CEO was apparently refering to Motorola Xoom in his comment, and it was priced way too high to effectively compete with Ipad2. Meanwhile, all over the world people are having troubles actually finding an Asus Transformer tablet as the demand is so great that Asus cannot meet it. Hence the remark that Tegra2 has failed to make an impact is really too early. These are the early days of Honeycomb tablet and it will need to wait until the vendor can ramp up their production to determine how many units of Honeycomb tablets will be sold.
Many people have claimed that current batch of Honeycomb tablets have problem playing high profile 1080p or even 720p video smoothly though. This seems to be a software issue as many cheap China tablets mentioned above, has been able to playback 720p or 1080p high profile video smoothly, while running on older and inferior hardware, on Android 2.x OS. NVidia and Google should really look into issue such as this instead of merely being "disappointed".
Some Android tablets comes in 7" form factor, which is a lot more lighter and portable than Ipad2. I myself regularly carry Samsung Galaxy Tab in my pocket (which mine is big enough to fit). It is basically around the size of a paper back and weighs only 400g. Some would prefer to carry a smaller phone but a bigger form factor helps a lot for those with worse eyesight.
Finally, a AMD Fusion based netbook has no issue playing back 1080p video smoothly as well. So those who wants a video playing netbook should avoid Atom and go with AMD instead.
I once worked for Nvidia and Jen-Hsun is actually a very cool guy. But it is difficult to over come a solid product from Apple unless it is completely superior. So for Android is not.
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