No LTE is a much bigger issue in the US where Verizon Xoom users are stuck on EVDO speeds. If a carrier picks it up in Canada it will almost assuredly be an HSPA+ variant which will already be significantly faster.
I'm sure the app support will catch up relatively quickly. At the moment the Honeycomb market is so small that developing apps for it seems like a waste of resources. As long as the Xoom sales are decent, and once a couple of other Honeycomb tablets hit the market, I'm sure the number of apps will pick up quickly.