The fact that you've heard of an iPad makes it significantly more likely you would choose it over the competitors even in a Best Buy. There have been mp3 players that were better than the iPod throughout pretty much it's entire existence, and they sat right next to the iPods at Best Buy and Wal-mart. They didn't put a dent in iPod sales at all. The only one that was wildly successful was the Sandisk Sansa, and the price/feature differential was such that saying it competes with the iPod is like saying Kia competes with Ferrari.
It'll be the same with these two tablets. People may buy the $200 thing because it's cheaper. Some (maybe even myself) might buy it because it's hackable. But nobody who wants an iPad will buy this instead, therefore they don't really "compete" by any meaningful usage of the word.
The first thing my dad says when I bought an iPad into my house was "hey was that that Apple thing? Pad something?" It surprised me that he even heard of it, given we're living in Thailand.
Why is the onus on me to prove it is one way or another?
The information is available online. Do you really think people walk into Best Buys before they do their research? Perhaps if money is no object. But for most people, it is, and therefore research is pretty imperative.
I do most of my 'research' by browsing in shops. I often go into places like Best Buys, Frys, looking for 'stuff I probably want'.
Also most people have credit cards. Most people often don't worry about money when purchasing things. They worry later when they're in debt.
The threshold is different for everyone, but I would say that $200 is below the threshold it makes sense to bother researching all that much if it looks like it might be useful. No point spending a couple of hours, extra petrol etc to "save" a few $.
I take it you've never worked at a major electronics retailer. People will drop several thousand dollars on impulse if a slick sales person does a catchy demo.
It'll be the same with these two tablets. People may buy the $200 thing because it's cheaper. Some (maybe even myself) might buy it because it's hackable. But nobody who wants an iPad will buy this instead, therefore they don't really "compete" by any meaningful usage of the word.