Some of us don't want iPads
I'd agree, many Android tablet makers have fallen for the "If Apple can sell at that price, so can we" and produce devices at the same price or higher that arn't as "good" as the iPad resulting in people looking at them and going "If I'm going to spend that much, I might as well get an iPad".
Unless your device is definatly that mythical "iPad killer", your not going to get away with pricing it the same as the iPad. Simple.
The recent Touchpad firesale shows people are interested in alternatives if you get the price right, though I think HP went too low in that case. But produce a good quality tablet, and it doesn't have to be an iPad killer just something good, for between $300 and $400 and you could gain a large market share.
And Amazon might be poised to do just that..