I'm really interested to hear what people think of the final product and how it stacks up against the low-end iPad. From a numbers point of view, Joojoo will win on screen size (12.1" vs 9.7") and resolution (1366 x 768 vs 1024 x 768). iPad wins on capacity (16GB vs 4GB), weight (1.5 lbs vs 2.4 lbs), battery life (10 hours vs 5 hours) & WiFi (802.11n vs 802.11g). Joojoo is being coy about their processor and the iPad's 1 Gz A4 is still an unknown quantity. As mentioned, Joojoo has Flash support but when out of Wifi range it becomes an inert slab of silicon while the iPad will continue to play back local media and run apps you've previously downloaded.
In my mind, for web surfing and consuming online media, the Joojoo has the iPad beat (its screen resolution is a huge advantage) but the iPad seems like a better all-around device. For $500 Joojoo needs to do more (and maybe it will via this "app store" Fusion Garage talks about). Put it this way, if I only had $500 to spend (which in fact is the case) I'd put it towards an iPad. Or maybe a savings account.