The Xoom is running Android v3.0 on a dual core Tegra2 CPU. The 10" screen has a higher resolution (1280x800) than the iPad2, and the Xoom also has a microSD card slot, better cameras, (5MP and2MP), more ports, and Flash support. Note that the iPad2 has none of these.
The Xoom also has HDMI out, an accelerometer, gyroscope, barometer, and a speaker. Now that I look at it, the Xoom shows that the iPad2 isn't really all that impressive. All the iPad2 has going for it is Apple.
P.S. In case you haven't heard, the second camera on the iPad2 is crap. Like the camera on the latest iTouch, it can shoot 720p, but it can only take pictures at 720x960. I have a camera that can shoot 720p video, and it can also take 10MP pictures. The iPad2 camera is pathetic.
via Droid Life