The problem with Android tablets is they're WAY too expensive. The iPad is the gold standard for tablets, and Apple products are always 30%-40% more expensive than mainstream products. The problem is everyone thinks they're Apple and end up charging the same price as an iPad. An Acer Iconia is not a status symbol, so there is no way they're going to pay the same price as an iPad for it.

Android tablets need to be in the $200-$299 range to start selling well. HP's recent $99 firesale shows there's a demand for tablets- it's just a matter of price (although I'm thinking that most of the sales of those were just from eBay resellers looking to make a quick 100% profit).