Dumb answer, I guess, but perhaps because they want it more than an iPad? For me personally the form factor is better in various ways and I greatly value the increased flexibility of Android over iOS, plus getting the "real" full web instead of Apple's definition of that.

Having said that - I won't argue for a minute that it isn't too expensive. I'm as curious as anyone about who is buying these.

I bought one for a very particular reason, it acts as a router for up to 5 devices. As a freelancer I am always on the road. The wireless hotspot was $300 with no contract and the Tab was $500. So for $200 more I got a tablet. Given that the kids also play pbskids.org and disney.com games we where holding out for an android tablet that supported flash. That said, I am extremely happy with the Tab, quality wise I think it is as good as the iPad, the voice recognition is far better than the iPad and the 7" form factor makes it easier to type on the virtual keyboard.

Interesting. Is the screen as good as the iPad? (Samsung should be able in this area.)

The killer iPad feature for me is that I can browse web pages as on a normal computer. At least my eyes can't handle 7".

Does the Galaxy have a trick with its keyboard? In vertical mode, I'd start to get more faults with a smaller keyboard than the iPad.

On paper I think the iPad has better specs for the display. But the Tabs display is very vivid videos almost look 3D. I do not notice a difference between the two. It seems at least for me, that 7 inches is the perfects size for a new style of thumb based typing where you type with your two thumbs. It is really fast and I like it now that I have used it for a little while. If you think about holding a Tab in the vertical position with your fingers under the Tab, and your thumbs above it, that is the way you hold it when typing, the 7" (at least for me) is the perfect size to efficiently reach every key. It is not as fast as a physical keyboard, but then again none of the virtual keyboards are. That being said, the voice automation and dictation is second to none, and free me from using the keyboard for simple items. You can get turn by turn directions by just speaking directions to "somewhere", you can email a contact by saying send email to "jim" "hey lets do dinner tonight" same with a SMS and several other commands, search the web and a host of others. The nice part about the Tab is it comes with a widget on the desktop that you just click the mic speak and off it goes. The voice activation alone is worth it to me.

  On paper I think the iPad has better specs for the display.
  But the Tabs display is very vivid videos almost look 3D

Ouch. There is „accurate color representation“ (which IPS offers), and there is „very vivid videos“.

The Tab has an IPS display as well.

Though of course IPS (S-IPS) by itself means nothing. The iPhone 4 has a bad color gamut. It's bright and very dense, but it is quite heavily undersaturated, and not in any way from an "accuracy" perspective.

Alas, accurate colors tend to look undersaturated to those used to boosted vividity.

I'm saying that from a scientific measurement perspective the iPhone display is very undersaturated. It is more than just a perception thing.

OK, thanks.

Hmm, voice integration with mobile devices should be neat.

The feature for me with the iPad (except for appstore and Apple ui/integration) is the size; it is a real platform where you can (almost) view content as in a normal computer. I haven't tested yet (started selling here in Tuesday), but serious 80 col editing in upright position must work! (Emacs with external keyboard!)

Maybe could use something on the backside for holding on easier, with one hand?

Perhaps not every person in the world likes the IPad.

They don't pay more. If we compare apples and apples, Verizon sells this for $30 less. Sprint sells it for about the same price ($10 more over 2 years), after taking into subsidy and higher monthly fees.

I know two guys over in Europe who have bought one. Both cited Flash as the primary driver.