External appearance and feel:
The iPad2 screen has a different feel from the Xoom screen - the iPad2 is a bit slicker, less likely to stick when moving short distances. The screen on the Xoom tends to show fingerprints more than the Ipad2 for some reason. Everyone in this family thinks that the iPad2 looks sharper than the Xoom.
Both weigh 1.6 lbs. Subjectively, the Xoom feels heavier than the Ipad2, but it's an illusion perhaps caused by it's slightly smaller size. UPDATE: I need to learn to use the scales - the Xoom is about 3 ounces heavier than the iPad2.
Both have a similar size screen, measured diagonally. But the aspect ratio is different - 4:3 for iPad2, 16:9 for Xoom. This means that the iPad2 actually has a larger viewing area, and this makes a real difference when scrolling through a web site. The iPad2 screen is brighter than the Xoom screen.
Hardware performance:
The Xoom feels a bit faster than the iPad2, and the specs show that it is faster. Both have dual core processors based on ARM designs. The Xoom seems to be able to handle graphics better than the iPad2. As far as connecting to Wifi networks, both seem to have this one down pat - they both just work.
User Interface:
The iPad2 is just like a big iPhone. Whether this good or bad is subjective. For me, it's good - polished, flexible and can be customized to my needs. The Xoom user interface is totally new, and unfortunately it shows - there are many rough edges. Some examples: moving icons around to group programs together is not intuitive and they keep moving back; you can see the first 5 applications running on the Xoom and select one, but the list doesn't scroll so applications that don't show in the list can't be selected; you can't close applications (except by a force quit that can lose data) as the Xoom decides when to quit an application; customization is possible but more difficult than the iPad2. In short, the Xoom user interface is a work in progress - great potential but currently quite flawed.
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