Build your own ARM CPU that's faster than everything else there is (included the on-die GPU) that is also low enough in power usage for the battery to last, 1GB of RAM, throw in an amazing custom made 3 megapixel (as in 50% more pixels than a HDTV on it) screen with a coating for fingerprints and a great touchscreen too, two decent cameras, the wifi chipset, audio codec, all the sensors including GPS, battery, a custom-made high quality case... We design and build embedded hardware at work and I know that this stuff costs real money (not counting engineering time, prototyping and such). Also, there's the OS license. A Windows CE 6 license (C6G) is ~$17 in qty of 100 and I don't see a "fancier" version of Windows costing less (I don't see them risking their desktop OS business for $10 tablet OS licenses either)
It's very hard to compete with the iPad hardware cost-wise. Some Apple hardware is overpriced, but some of it is spot-on. The Macbook Air is another example of that (besides the iPad). Some OEMs stated that they just can't produce something similar at that price point (so they're phasing out these products since they sell poorly). Look at android devices approaching the specs of the iPad and you'll see the price quickly get there too. And even if you disregard the price, lots of OEMs simply unable to produce something like the iPad. Even big OEMs like Dell just don't have the resources to do things like custom CPU design.
The other kind of Windows "tablet" devices being pushed are sucky laptop/tablet hybrids which cost more than the iPad. Like the Lenovo IdeaPad Yoga with its super high TDP Intel i7 draining your battery and producing massive amounts of heat, which has double the thickless, double the weight, and has half the screen resolution of the iPad 3 while also showing all fingerprints, at a 1000$ price point. It's not a device I'd want to lug around everyday and it's too pricey as well. The iPad 3 also has 2 cameras, does 1080p video capture, has image stabilisation + autofocus + face recognition, etc.
Also, the iPad's UI is made just for tablets. It's a custom, no-compromises tablet OS unlike the all-compromises Win8 frankein'OS. There's far more software for iDevices (especially high quality software), and the developers' mindshare is much more on the Apple side (or even Android). MS is angering developers with their latest development tools, and no one seems to care about Metro there either. Combine that with the previous sales figures for the MS Zune/Kin/Phones which screams "this won't sell either", then why would you even develop for it?
Nevermind that saying "it has Metro on it" probably won't be a big selling point once people have tried it on a desktop (you might as well tell people it runs on Vista). Then again, the demand for Windows tablets is quickly dying. I've lost all interest in one too. Too little, too late. There's nothing it does that a iPad wouldn't do better for me. I just can't think of a single reason to buy one anymore.



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