The chair is definitely part of Apple's genius when it comes to the iPad. It shows us that this isn't a laptop or a PC and the iPad doesn't fall into the paradigms we're used to. It's something new, meant for you to use when you're relaxing rather than working, and you haven't experienced anything like it. You won't get it until you try it.
As for the competitors, they do have a ways to go. But the Xoom is definitely a great step, especially with the higher-res, less awkward screen for watching video (the aspect ratio is an annoyance on the iPad).