I’m not sure I can recommend the Xoom over any of the other tablets out there right now (especially that sexy little Galtab 10.1), but don’t remember ever hearing people complain about price drops. Costco has the 32GB Wifi Xoom for $500 in-store now (with a free case), $100 less than its original price.
That makes it a bit more credible in the market, but I still don’t think it’s going to crack a million units sold any time soon. This may be part of a larger trend in lower pricing for these things, but I wouldn’t hold out hope on that.
Oh, if you bought one from Costco recently, drop by the store and check if you can get the difference paid back to you. They’re good about that.