Wi-Fi requires cell data sign-up: Engadget has a Best Buy ad for the Motorola Xoom that states you can't use the built-in Wi-Fi without having at least a one-month mobile broadband subscription. Well, ain't that a kick in the pants. This is in addition to the $800 price for the feature-heavy Xoom, which comes with front and rear cameras, 1080p playback, 3G service (with a 4G LTE upgrade promise), and Adobe Flash support.
But, really: You have to activate Verizon Wireless service, even if you then cancel it, to unlock Wi-Fi? Big misstep. It's along the lines of that common scene in a car dealership when you're about to sign the papers, and the sales regretfully informs you that his manager won't sell the car without the underbody rust inhibitor treatment.
(That's from before the auto sales collapse, for you youngsters.)
Update: On 24 Feb, Verizon Wireless announced it would not require activation to use Wi-Fi on the 3G models.
I agree that it is annoying, but I don't agree with the car sales analogy.
This is the cellular version of the Xoom. If they are up front and clear about this requirement then it isn't so bad that they require a cellular account.
In your car analogy they are requiring that you buy something that is bogus and they are springing it on you at the last second.
What is annoying about this is not that the cellular tablet requires a cellular account, but that there is no Wi-Fi only version available at this time.
The Xoom was described in advance as coming without a contract. The fine print could easily be missed. Even if they tell you when you buy it, it's a strange requirement.
Perhaps in a vacuum, Motorola could get away with this. Apple's 3G iPad, which includes both Wi-Fi and 3G radios, may be purchased and used without any service plan indefinitely. You turn on a 3G plan on demand on a month-by-month basis. Wi-Fi is unlocked to start with.