I actually really wanted to buy a XOOM, with it's promises of openess and flash support. I spent quite a bit of time on the Motorola's official forums.
First thing that turned me from it was the lack of DRM support. Android prides itself on being open and free, however, it's a nightmare for studios. It's like a city with no cops, in that no one wants to open up shop. Second, the battery life is only about 7 hours in real active usage.
I could've overlooked them and got around those problems. However, I saw one in person and I couldnt get over how bad the screen looks. You can see dark lines between the pixels (as if they were in little grids as opposed to a seemless image.) This is more apparant in gray and white backgrounds. The ironic part of it all was that the Google.com looked terrible.
The big problem with android (I have an android phone) is that google is more concerned about developing new features rather than making existing features work better. In the end, android can do more things than iOS but it seems to do everything half-assed as opposed to polished ecosystem of Apple.
After wasting a few months researching and contemplating getting a WiFi only XOOM, I decided to not pay the early adopter price and ordered an iPad 2.