Runs Android: Excellent.
Runs Flash: Too Bad.
A year behind the market leader: trouble
Will cost more than iPad: marketplace death
You just can't get away with charging more than Apple's offering unless you're providing some kind of genuine innovation. This is unlikely to offer anything iPad doesn't and even if it did, nobody would be inclined to believe it. That means it has to be cheaper, which shouldn't be so hard with Apple's typical margins.