Microsoft vs Apple on tablet concepts
iPad: Intended to be used completely without a keyboard. Touch is the main interface and is made to be fun and enticing to use. (Simplicity)
Surface: Can be used without a keyboard, however, a keyboard is the main accessory and comes across as a laptop or netbook replacement. The inclusion of the desktop & office requires the keyboard. (More choice)
Although I like the Surface, I think the perception is that it tries to be all things to all people. This makes it just another laptop/hybrid. And in the end a turn off for most consumers. The iPads simplicity is genius, and I think this makes it the preferred choice with consumers.
I'm hoping the 8" Surface is more of a focused device, no goofy type keyboards, just make everything on the device work well with touch...