I realize it is not a normal practice, however, the expecting the worst comes when you believe the guy is lying rather than believe a store might give a small discount.
obviously a reseller gets the merchandise for less than MSRP then they mark up and thats their profit.
this probably is a small locally owned shop that is trying to get business.
yeah, they would probably sell out at retail price. probably by people that never set foot in their shop and probably never would again. but think about all those people that came in to buy the iPad and got a pleasant surprise of a below MSRP discount. Now not only did they come into a store that they may have never patroned had it not been for the iPad, but now I bet you they think of that store when they are going to buy their next electronic purchase. Repeat business because of that $30 could be measured exponentially. They realize that the impression they make on the customer and the word of mouth it will get is worth far more than the $30 per ipad that they missed out on.
thats the logic = good business.