The answer to question 2 is: few people will.
HP has taken $100 off the price of its 10 inch tablet and it still sold 15,000 in Europe in July compared to 160,000 iPads.
In the first week of August, HP sold 700 ten inch tablets in Europe; Apple sold 43,000. It's the same story for other tablets.
The truth is: if you want a ten inch tablet you buy an iPad - there's no such thing as a 'ten inch tablet market', there's only an iPad market.
Which begs Question 1: Why buy an iPad?
You can toyed with them, fondle them, covet one, but you always think: What's it for?
An iPhone does everything, and more, what an iPad can do, and sits in your pocket.
Yet iPad owners love it.
This is the killer quality of the iPad - no one needs it, no one talks about its functionality, no one knows why they need it - but they love it.
How on earth can potential rivals compete with a product spec like that?
It's the first killer-app-less product.