Is it better than IPad 2 (at $339) without retina display?
Depends what you are looking for but my personal opinion is no. Also I don't see this being too huge of a deal. It's a good deal not a great deal. I saw this at best buy for $300 about 4 months ago. The iPad 2 has superior build quality, and many many more tablet designed apps. Android tablets are still lagging in the apps made for tablets department and instead take apps made for phones and blow them up for the tablet.
But if you are just web browsing and youtubing both are great products.