The onscreen keyboard is very similar to the one on the iPad, although it feels a bit smaller. It takes some getting used to, but it is possible type fairly quickly. Although one can pair a physical Bluetooth keyboard with the Xoom, it's a shame there isn't the option of a wired keyboard dock as with the Eee Pad Transformer. In addition, the curved back of the Xoom means it can rock gently from side-to-side when rested on your lap and you're trying to type which is annoying.
Motorola hasn't bundled an office suite with the Xoom, but a handful are available on the Android Market. Disappointingly, the number of tablet-specific apps in the Market is sparse compared to the iOS App Store and there currently isn't a way to search just for tablet apps, excluding smartphone apps.