Is The Microsoft Surface Pro Tablet Computer Going To Hold Up To The Competition?

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The best description I can give for Microsoft Surface Pro is that it is a laptop in tablet form. It will run the same programs that you have been running with Windows 7; BUT, will this be enough to standup to the competition (the Android Tablets and iPad)?

I am a Windows user, always have been, but there is two things that is holding me back from the Surface Pro, and has me questioning Microsoft’s strategy:

1. The price of $899+ is too salty for my pocketbook. For 899+ I can get a pretty decent Ultrabook with a touch screen. Granted the Surface Pro is comparable to the full Windows desktop and notebook computer experience that I have always been used to; however, after personally using and experiencing the simplicity of the Android Tablet (at a much lesser price), and the iPad, I cannot see existing home based computer users or the new generation of users (our kids and grandkids) going for Microsoft’s flavor of the tablet (Pro or RT Models).
   

   For example, I have two elderly friends of mine, one owning an Android Tablet and the other owning an iPad. Both have expressed how easy it was for them to use these devices in comparison to their Windows based computers. As a matter of fact, they are spending less time at the keyboard.

2. The Surface Pro (best model) ships with a 128 GB of space and from what I am reading this space can drop dramatically to around 89 GBs with Windows 8, Microsoft Office and the built in Windows apps installed . Also, I have noticed that many of the Windows Store apps can be quite large in file or install size compared to the typical apps installed on the Android OS and iOS (iPad) platforms.

I don’t want to sound too negative about Microsoft Surface, because I am a true Windows based user who has lived in the operating system for years; BUT, that has been my passion, my hobby, my life blood… Most people I know could care less about computers or Microsoft Windows. All they want is an easy computer (internet) experience and they want it at a reasonable cost; whether it is Android, iOS (iPad) or Microsoft. In other words, I am starting to realize that the writing may be on the wall and that myself, desktop computing and Microsoft is becoming old school pretty fast.
I would love to hear insight on this from the experts in the field and from the everyday computer user at home.  (see a related article here, called Rethinking Tablets, at TTC Shelbyville - a Tennessee Tech School).