I have an iPad, I knew what it did when I bought it, all it is is a big iPod touch, anyone who tells you otherwise is an apple fanboi. However making an iPod touch 4x bigger really unlocks the browsing experience and the ability to digest content, such as ebooks, e magazines, rss feeds etc.
The 2 main massive deficiencies in the iPad are no multitasking and no flash. You can allow proper background multitasking via jailbreaking it and using backgrounder, but having to use crude cydia hacks to get the best out of your iPad is dubious at best.
If Android wants to bring the tablet fight to iOS like it has the phone fight, I would suggest they introduce some sort of window based multitasking e.g. Can have web window open on left of screen and TV/Movie playing on the right of the screen. I think that would certainly give a good edge. Android multitasking is already much better than iOS4 multitasking, so they should work to improve that edge especially on tablets.
The other problem Android faces, is facing off against Appstore. Appstore is much better than the Android store in some areas, such as games in particular, and games are one area the ipad shines due to the screen real estate. For an Android slate to compete well with iPad, we would need to see an increase in the quality of apps. On a phone the difference between the 2 appstores is minimised as you really only use a phone for soo much, and android market matches off quite well with appstore for most things you'd want to be able to do. Flash, however could be a great leveller in this regard, if Android slates can tap into the wealth of free games out there.
The iPad is just too much of a closed system, and the apps are very expensive. You could spend the price of the iPad again on apps. If you aren't going to jailbreak your iPad, don't buy one. I await impatiently to see what Android tablets we will see in Q1 2010.
Ignore the fanboi in the OP, the iPad is fatally flawed, much the same way the original iPhone was, and the competition is already reacting. I see a competitive tablet market in 2011.