Far too simplistic.
I have followed both (as well as the upstart "Notion Ink" lately because I am considering getting one.
Here is my take: In specs and operating system - Xoom is better - for now.
In apps - Ipad is far superior - for now.
For roll out - Ipad wins handily.
The Xoom roll-out is almost going to guarantee it will not be a serious competitor. As another poster comment who want to buy a Verizon plan just to get free WiFi. Also, the added features are not enough even though they are comparable to the most expensive Ipad don't justify the purchase. Essentially, Motorola wrote off everyone that wants a more basic tablet (which is a big share of the Ipad market. If they wanted to be a serious competitor they needed a second model priced lower than $499.00.
Even though I am not 100% happy with the Ipad, I am going to make it my choice primarily because of the Apps.
The SD card doesn't work due to OS limitations, the OS has stability issues, poor browser rendering, weak email client, 4G is missing, no Flash. The product screams "rushed to market." The lack of 4G is especially telling. It will be available for install in a couple of months. That means they knew the iPad 2 was coming out and had to get this on the market before that, even if the product wasn't finished yet.
I do see some serious potential though.