The people who spent years developing this aren't being paid in rice and a warm spot by the boiler. The last time you bought a book that cost more than a dollar were you outraged at being overcharged for some paper and a negligible amount of ink? The physical parts are usually the least expensive portion of developing a new product.
No doubt the future will see price reductions for a variety of reasons. But the price must be sufficient to sustain continued development. And, as Poloponies says, the volume of people buying the product suggests that many people find enough value in the product at the current price.
How is this such a new product? It is using tech borrowed from older generations of devices in a new way yes, but, inherited CPU architecture, inherited OS, battery tech developed shrewdly through the MBP range... Sure developing kit is complicated (I worked in avionic design for 15 years, so I know what you're talking about).
I am a little confused by this reference to what the people in China are being paid! I am quite sure looking at Apples's incredible profits during a recession over the last few quarters, that Apple they should be paying these folk a lot more than rice.. Also, given recent reporting of suicides on the production plants, says more about North American greed and demanding expectations- and an increasing desire to dominate a market... coupled with a demand supply Frenzy has more to do with corporate greed, than it does on an individual level.
I resent that the inference that raising a question about education discounting, should be interpreted as greed - against Apple's pseudo religious marketing, increasing desire for something they don't need, that is, what; a play thing or tool? Please remember in europe, we have had increasing hype and build up for this thing. I even had my 83 year old father-in-law asking me what this iPad thingy is. I held one in my hands yesterday, and thought, no filesystem, bolted down wireless issues, and put it down. I'm not sure what my answer should be to my father-in-law?
The linking to iPhone pricing, is ridiculous, and contracts to ensure data providers, forced prices more than anything - we have been told this a a new kind of device, surly as there half that family of iPad's are WiFi, there should be no constraints on pricing?
Is this thing a toy or a productivity tool, can anyone seriously answer this question.... Where is the morality, is it with those that create desire, or those that desire?
STILL- I remain curious as to the real potential of these devices, despite the obvious problems I see....