I have to disagree. I think Win 7 Phone OS or Zune OS based tablets are going to be the only real competition. It is the only mobile OS (CE Based of course) that has the same velvet feel to it while using it. Everything is fluid and smooth, whereas everything android is chunky and choppy no matter how much power you throw at it!
I will be very interested to see MS put out a tablet computer with a mobile OS on it, since it is very finger friendly in ways that Win7 is not!
Also MS is being extremely particular about what hardware Win7Phone will be allowed to run on....while android is open to any and all hardware no matter how pathetic they are and no matter how horrible the hardware vendor is about implementing it and updating it (im looking at you motorola!!)
Keep your eyes open, this is going to be a new age for both Apple and MS.
I guess I have to disagree with your disagreement
I don't find everything to be "velvet" on my Ipad, and I find the Android tablets I have played with (Galaxy and Archos) to be pretty much just as smooth. I notice much more lag on my Ipad when surfing Netflix (via the app) or other busy websites than I do on my PC and that same lag is there on the Android devices. I can live with it considering the low powered architectures running these devices but when I want a really smooth experience I still hop on my PC.
Other than that I agree with your assessment. Android will have to fight crappy hardware implementations for some time to come.