In what way is Android "cut down"? Sure, unlike the original mainline kernel, it is heavily optimized for embedded systems, but there is no fundamental difference between android and every other operating system out there.
The only thing that is limited is the range of available input mechanisms (an issue notably missing in android-based tablets), everything else is an issue with missing applications, which isn't really android's fault.
Oh in theory you would be correct.... in practice, as Kajorama pointed out, not so much.
... the optimization for the tablet platform with all its limitation is at once Androids (and iOS) greatest strenght and ultimately greatest weakness. With keyboards and mouses and extra monitors, printers, all being "nonstandard/unusual/or in same cases impossible" to use with a tablet, with the way the app market is set up and with the pricepoints that it accomodates the whole thing is simple dead on arrival when you consider it from the perspective for a professional software developer who has been selling enterprise software or creative sotware suites.
As I said before... Android and iOS tablets are fledgling childs that - of course - can not compete with the Windows platforms hardware flexibility on the one hand and the wealth of "grown up" software suites on the other.
I mean, don't take me wrong here.... I truly loved my Galaxy 10.1 as I first got it... I loved the size and form factor... and I literally tried to do everything with it... and got more and more frustrated, then acknowledged that it is simply unsuited for certain tasks... then admitted that I could do most things easier, quicker, better, and with less frustration on my PC (keep in mind I do have a 12" Win7 Wacom tablet - which, while not *quite* as portable as a 10" tablet, is lightyears ahead of Android/iOS in productivity when used as a mobile device for work)... and ultimately... left it next to my bed to occasionally use as an E-reader or browse the web while laying down.
I'm thinking of getting a Kindle though (hugely more battery life, more portable and less strain on the eyes when reading due to e-ink)... so the one useful thing the Android tab can propably do is go to Ebay.
In summary... I can truly see the potential of the size and form factor... but I experienced Android as a platform that is either completely unsuited for most tasks in my workflow or everyday life and at best "worse" than my pc. (and iOS with its ridiculous restrictions and file system limitations would be worse).
The form factor is the only thing these devices have going for it in my eyes... and now Microsoft is offering that. If their marketing department can get that point across (which is another big if admittedly

) ... then Game Over for the "toy tablets" ... except maybe as actual kids toys or a niche in the ultra low end / low price segment. (Android talets could propably survive there... Apple not so much.)