I think Moto (Xoom) is expecting to compete w/ ipad2. Xoom vs. ipad (1st gen) it isn't the right comparison. Apple has a strong headstart on the no. of apps optimized but that should be expected for being a pioneer. I'll be surprised if ipad2 price is going to be much different than Xoom.
Also Xoom is a new product & it's consider high end (1st honeycomb tablets) so they must've feel that is the "right" early pricing. As more honeycomb tablets launched w/similar specs the "right" pricing will be corrected b/c at the end of the day, it's all about supply & demand (and competition). I'm itchy to get one but can't justify the high cost just for having the latest & greatest!