The Motorola Xoom (model MZ605) with Android 4.0.4 (Ice Cream Sandwich - API Level 15) is the first Android tablet I have used. I have to say that the on-screen keyboard is seriously bad. There are times I am in editing mode and the cursor jumps to a spot I haven’t touched, spurious characters appear when scrolling, and sometimes key presses do not register at all. I am also a regular iPad user and haven’t had any such issues with the on-screen keyboard.
The best solution I have found is to use an external mouse and keyboard. A Micro USB Type B Male to USB Type A Female adapter can be used to connect an off-the-shelf USB hub. Both the mouse and keyboard are then plugged to the hub. The on-screen keyboard does not appear once the external keyboard is detected. You also get a nice little mouse cursor for more precise control. If you intend to get any amount of serious typing done on the Xoom, you’ll appreciate this setup.