Xoom Tablet Priced Way Too High

Previously it appeared that Motorola's Xoom tablet would cost $800, arguably too expensive vs. the iPad and others such as the HP-Palm tablet. But now Engadget seems to have found a BestBuy ad that indicates the Xoom may retail for $1,199. What?

If that pricing is acurrate it's a major strategic blunder for Motorola. No matter how fast/cool/sexy Xoom is, it won't move many units when iPad 2 is available. iPad remains "the brand;" Android tablets are insurgents that have to establish superior value and utility before they win customers. 

With pricing at over $1K, Motorola won't be winning too many consumers over -- regardless of how interesting their advertising may be.