On performance, we both seems to agree that there are hurdles, it won’t be cakewalk for sure.  
On pricing, you failed to realize that Windows and Office is MS’s main source of income.  They will go under if that* is taken away.  (by that*, I mean Win+Office = $300-$500 per machine).  They will never just “integrate Office into Win8″ and…give it away.  MS can’t afford to do that.  It is like saying McDonald can sell more $1 fries if they come with free hamburgers.

Usually you carry your mobile phone along as well when you leave home.

The iPad camera comes in handy when you don’t have any other camera available or if you want to work with or present the pictures taken right away. 

I guess that the better camera for the new iPad simply comes at a similar cost. So why not have it.

If the iPad came with an even bigger display I’d consider it an iPad 3.

Hope to see an iPad with a digitizer and pen input one day.

While for pricing, MS doesn’t charge that much for pre-installations.  Since netbooks started they have been forced to give prices closer to $30, at least for mobile devices with volume licenses and is why Windows 7 Starter Edition was basically created to provide a lower cost version of Windows specifically for systems like netbooks.  You’re just forced to pay full price if you want to install the full retail version.

Windows 8 for ARM will only come in pre-installed systems.  So they will likely leverage mass orders to keep pricing reasonable.

Office may also be integrated into Windows 8 for added value as well.  MS knows it has to pull all the stops if it expects to compete in the mobile market and charging more than the device cost isn’t going to work.  While Office is their best leverage…  They’re also allowing Windows 8 to run Windows Phone apps and they will also be leveraging things like XBox Live, etc…

Biggest hurdle is the emphasis on Metro interface, minimum requirements, lack of legacy support on ARM, and the time it will take for their App market ecosystem to develop are all things that may prove potential deal breakers for many.

Also, MS likes to charge $150 for Windows and $350 for Office.  How are they going to put $500 on a tablet? ( It is a good thing they can’t, because I know they would if they could.)

Windows 8 tablets may not be as sexy as the iPad, may not have the hardware (Retina display mainly) or the amount of applications in the store.

But what Windows 8 tablets will have, will be the FULL Microsoft Office suite of applications, along with skype integration.  And with others who are (currently) working to make their software Metro optimized (touch optimized) this is going to be a killer.  Mozilla has already confirmed a Metro optimized firefox browser.

If Adobe, Avid, Google and others jump on board and make all of their software Metro/touch optimized, it’s going to give Windows 8 a lot of meat.

 That being said, it will be interesting to see what will happen with iTunes and Safari.  Will Apple make those software touch and metro optimized?  As well as ARM capable or not?

A x86 tablet WILL be able to run iTunes and Safari.  It may not be as touch optimized, but they WILL be able to run those programs.  It will be curious if Apple will optimized those two so Windows (touch) users will be able to use those two programs easily.

Microsoft WILL make sure that their suite of applications will be “full” and optimized for touchscreen, x86 and ARM tablets.  Also, they will make sure that the stuff is integrated as well.

Honestly?  I’m far more interested in the windows 8 tablets than the iPad 3.  The iPad 3 will be a Ferrari.  Drop dead sexy and fast.  But, windows 8 tablets will end up becoming like Brabus.  Not as sexy as a Ferrari, but the shear power and force will completely rip a Ferrari to pieces.

Not saying that the iPad will be bad, but what a windows 8 tablet will be able to do will far exceed that of an iPad.  Mainly because of OS.  There is no way, shape or form, a Mobile OS is on par with desktop OS.  A desktop OS is far more powerful, capable, than a Mobile OS.  And that’s the advantage the windows 8 tablets will have over iPads.

The question is, are people more interested in flash and bang, and impressing their neighbors with a toy?  Or get the best tool possible? 

The nice camera is great for FaceTime, video — it’s so cheap to put one on a device, why not? I mean, common!!!

“Who in the (sic) right mind would be taking pictures with their iPad anyway…”

What? It’s a great device for photos and I use it for that all the time. An 8″ x 5.5″ viewfinder! Where else do you find that outside of a field camera? Plus many different photo apps, like Top Camera, that allow the fine tuning capabilities of a good digital camera.

The need for a camera was obvious when using the first iPad, and the lack of a GOOD camera has been evident with the iPad2… it needs one that can keep up with the usability of the apps.

Except maybe TVs.