I don't think there's much that can be done with this. I spent a week with a Xoom and while it isn't slow it isn't lightening fast either. So you can't really cut any of the hardware specs.

The cheap Android tablets that came out before saved money by putting a sub-par touch screen on. But last I checked Google was insisting on Multi-Touch ability for Honeycomb tablets. So there's no way to go cheap on the screen.

So I don't see where Android tablet manufacturers could cut from. As it is Apple's ability to buy in bulk and manufacture their own chips gives them a huge cost advantage.