The Xoom is good but it's not optimized properly, so you'll experience lag at times, especially when viewing flash content.
Android hasn't optimized their OS to fit the Xoom and vice versa.
Where-as the iPad 2's iOS is optimized for the hardware so you're assured the best experience all the time.
I would say the iPad 2 is the best bet, cuz keep in mind, it's a TABLET, not a COMPUTER, so it doesn't have to necessarily do all of your computing.
I have the 1st gen iPad and love mine
I use it daily