I have an iPad 2 and Touchpad. And I have to say RIM's and HP's approach to taking on Apple were laughable (this also applies to the Xoom).
They messed up in pricing it just lower, the same price or higher than the iPad. iPad has Apple branding, an already established mind share (people think tablet they think iPad).
iOS is obviously a bit mature, so why would you send out funky code to compete against it (RIM, Motorola and HP). We've complained adnauseum (sp) about Web OS' sluggishness, the browser, poor ereader software and pdf capabilities.
This thing came out AFTER the iPad 2, so there's no way they couldn't have seen that Apple's device is thinner, the back of the iPad is metal (or other tablets with ruggedized plastic), etc.
But for the $100 price tag and the effort of the community, it's a decent product. Besides the Transformer, the Nook and the 7" Galaxy, are there any other tablets that will honestly make a dent in Apple's marketshare? Price is going to be the only factor.