the issue is the screen size.
these are not tablets they are toys. They need true useful screen sizes of 10 inches or more to be of consequence.
What are you referring to? The iPad has a 9.7" screen and the Xoom has a 10.1 inch Wide angle screen... both are quite usable for their purpose as tablets. The 7 inch screen "tablet" are what I would consider too small to be useable at just 45% the area of the iPad. The Xoom is just 2.9 square inches larger than the iPad.... it's a bit longer than the iPad screen by about an inch while the iPad is wider than the Xoom's screen by about 3/10 inch.
Reviewers say the Xoom is designed to be used in most conveniently in landscape mode while the iPad can be used either way.