Liliputing is reporting that Motorola has dropped the WiFi-only Xoom with 32 GB down to $499, that is $100 cheaper than an iPad 2 with equivalent storage.
This is a very good tablet. However, keep in mind that if you are interested, there a a few issues you will want to consider. One is that apps specifically designed for Android tablets are hard to come by and updated the Honeycomb OS isn't here yet (Google said this fall). It is hard to determine just when that update will be available. However, it should be running version 3.1 now which is a heck of a lot more stable than the initial release.
The Xoom is one of the best, if not the best, Android tablet around. You can't go wrong with it.