Can the Moto Xoom Compete with the iPad with a $699 Price?

The Android OS 3.0 powered Motorola Xoom got a lot of attention at CES earlier this month. In fact, it was the winner of the Best of CES. The big questions are:

1. When will it be available?
2. How much will it cost?

Engadget appears to have the answers to both of these questions.

Motorola Xoom launching February 17th at Best Buy (update: priced at $700)

The Xoom will be, it appears, only available in a single 32GB storage 3G model (no WiFi-only) using Verizon’s network. The rumored $700 price puts it right in the iPad 3G sweet spot. The 32GB 3G iPad is said to be the best selling model and is priced at $729.

Is a $30 price difference, the availability of integrated cameras, and a few other hardware perks enough to compete with the iPad or, more importantly, an iPad 2 (if it is announced soon)?