I hope webOS lives on... but this just goes to show that if you can't beat Apple significantly in price or features.. it's going to be an uphill battle.
I think it's funny that TouchPads are so hard to find now that HP slashed their prices... but they probably could have got away with $199 and $249 (half off).
If someone can port a fully working, stable Android/Honeycomb to the TouchPad or make an Android emulator for webOS (ala QNX), there might be some life left.
In other news, I like my Asus Transformer more each day. The latest update now adds Netflix capability (although you have to find the APK yourself) and ad-hoc WiFi access (go tether go!).
Still waiting for the "summer" release of the Galaxy Tab 8.... or even the redesigned Galaxy Tab 7. The smaller form factor is the market where other tablet makers can compete because it's going to be very hard to go against a 10" tablet with 2048x1536 resolution (iPad3). Although, Tim Cook could go back on Jobs and throw Apple into the 7" tablet arena.