Have you looked at iPad apps lately? Even if you don't include iMove and GarageBand that were just announced, how about OmniGraffle, Sketchbook, Inkpad, the Korg Apps, Reeder, Osmos, iWork, etc.
Guess what, you can do that with a 386 laptop from 1995. Apple's success comes from convincing people, through marketing, that they want to do that on an iPad and not on something else.
However I think you're underestimating how many non-tech savvy users find appliance-like apps much easier to understand than the web. Yesterday my wife borrowed my iPad to use with her mother to look at furniture on Craigslist.
She got me to buy a $2 craigslist app that I'd never dream of buying for myself which turned the iPad into a light-table of photos of stuff for sale linked to a map. Suddenly her mother could use Craigslist. At a certain point the screen blanked and she had a moment of panic of not knowing what to do - but then she realized there was only one button to press and everything was ok again.
That 386 laptop from 1995, or for that matter an iMac from 2011 requires a vastly more developed mental model in order to do anything. Even if most people can eventually learn this, it's work, whereas the ease of the app model on the iPad makes it relaxing and fun.
The apps matter a lot.
Apps matter. More than any other consideration, including brand.
Ah, the old meme that people are just brainwashed by marketing into being happy with their Apple products, complete with made-up "95%" statistics.
Then why do I want to do that on a 2011 Android clone tablet that costs more than the baseline Apple one (as of 3/2/11 more than $100 more)?
"Apple's success comes from convincing people, through marketing, that they want to do that on an iPad and not on something else."
They convince people that the things that they normally did on their desktop or notebook propped on their lap, they can now do on the couch curled up leaning against the arm of their favorite chair, perhaps with the TV on, as they pinch and zoom and tap and slide freely around a large, bright touchscreen instead of a tiny glidepad.
"Blown up phone apps" are much better on Android than the pixel doubling that the iPad does for iPhone apps. Android apps aren't hardcoded for a specific resolution, so most of them work well on tablets even without being specifically designed to.
Are you seriously claiming that apps developed for android phones are as good as the dedicated iPad apps?
In many cases, yes. Especially fullscreen games; Angry Birds and Fruit Ninja and several others look as if they were designed specifically for my Nook Color, even though they weren't.
I believe the parent is trying to claim that blown up android phone apps on Xoom are no worse than blown up iPhone apps were when the iPad first came out.
I'm not saying the Android tablets aren't competitive with how the iPad was at launch. I'm asking why a regular consumer would choose an unproven tablet with a tiny number of apps over a proven tablet with 65,000 apps today.
The converse of above statement is a richer ecosystem is not really an advantage or incentive for developers!