How is Microsoft not competing on price? Apple set the price point for premium tablet hardware with very basic software included, Microsoft brought premium tablet hardware and bundled in some significant programs and matched suit on price. I do not see where this is considered a lack of competition.
Most apps available on any tablet in any ecosystem (even the majority of these early windows store apps) are weak attempts at emulating something that is in general easier/faster to accomplish on a desktop or laptop computer, the difference that makes them relevant? Convenience. Microsoft did bring something more than weak emulation to the table with the office products that are INCLUDED with the Surface RT at the same price point as the iPad. They set a new bar, and I for one expect that after some development time is allowed, there will be many more developers bringing big ticket programs to the Surface RT. It is capable hardware and the underpinnings improve month over month.
Nobody is telling you to go out and buy a Surface, so why do you linger here if not to flame and troll? It seems from this comment that the Surface RT is not even in your list of considerations for a tablet, so again, why are you here?