No tablet at all, of course! Those are the people this is targeting.
It's sort of like comparing a Fiat 500 (the original ones) to a Ferrari. No, it's not as good. However, it's probably better than nothing for most people buying one.
I don't think accounting for price is equivalent to him cutting slack for the Fire.
However, to answer your question:
Any Android or WebOS tablet on the market still.
The Nook Color
Older Kindle models
iPod Touch (Same price class, similar features)
Yes, the iPad SHOULD be in the conversation, but just as it defined the tablet market, so too did the Kindle define the e-reader market. It's a brand new market, and I have a hard time believing it's never going to evolve or see a worthy competitor.
It sounds like you were the one expecting him to cut some slack for the Fire - "it's a cheap Android device after all" - not the other way around.