Can I propose that any and all discussions on tablet computers only be started when, at the very least, actual production-ready examples are available? Otherwise this is gonna get real old, real fast.
As for this particular example, and assuming that Cisco brings it to market, there's a few major challenges. The first, most obvious, one is that if it's only coming out in 2011 that's dangerously close to the next iPad which you'd think is likely to have facetime included as standard. So that's that USP out the window. Next it's only a 7 inch screen... that's not a lot of desktop real estate when using virtual desktop clients. We also don't have a confirmed resolution for that screen. Battery life is stated as 8 hours which isn't great and I really really doubt you'd get that when using the video conference stuff they're pushing. Perhaps most importantly there's no mention of cost which, considering it's got a Cisco badge on it, isn't likely to be cheap.
As for an iPad competitor... no, sorry. This is almost entirely focused on niche markets with VERY specific uses, it won't get anywhere in the home not least because it's been hit repeatedly with the ugly stick. Frankly I really don't think you're going to see a true iPad competitor (or, at least, not one that gains real traction) until 2011 when Apple will have the next revision on the market. After that... I dunno, same pattern as the iPhone I'd guess. iPad is going to sit lurking at the top end of the market while Android fills in the cheaper mid-range stuff. Android will probably end up taking the majority of the market (it's kinda inevitable when you've got dozens of manufacturers against one if the product is even halfway decent) whereas Apple will dominate the high margain top end and be very very happy indeed.