I've always felt they're overpriced from a hardware perspective

It's not a policy that seems to have harmed Apple to date, so I'd agree that there is no reason for Apple to sell them at a lower price. I'm sure there's enough people here to stump up as well as in the US. If I had a use for an iPad I would feel slightly miffed about this (in the way that I do about Macs - I'd like a more modern one than my PPC Mini, but it just doesn't make economic sense).

Selling goods at well above their logical market price is a policy that has served several companies well, not just Apple.

I wonder if part of the Apple allure is that it is reassuringly expensive? If they were cheaper, perhaps they would have less cachet or perhaps customers would feel that they are not buying a superior product. I am not saying every Apple customer buys for this reason, nor that these are the only reasons. I think I am a pretty rational person and I don't think these are reasons which influenced me to buy Apple, but if I am honest I cannot rule out the possibility that they were a subconscious influence.

I think it's a perception Jobs would have us believe and perhaps believes himself, but it's not a reason for me not even subconciously.

I see it like this. If you could meet a beautiful girl and she was prepared to just jump into bed with you straight away then you might think she was cheap and you would feel like another notch on the bedpost. But if she was hard to get and you had to romance her and you did finally become a couple then you would be more over the moon?

So I guess if you could get an iPad for £100 then you might not appreciate it as much as if you had to work hard and pay more?

I think some things become a commodity when they're too cheap.

It may be that Jobs is happy to allow that perception, but the fact is that Apple builds things to a budget and with a target margin in mind - and the CFO (name escapes me - Oppenheim?) warned last year that margins were to be cut, relating to new product launches.

Given that most commentators (who can do the production cost maths like anyone) were expecting a $900-1000 products, I think that tells you how tightly Apple are controlling the cost and changing their base strategy.

In short: nothing with this build quality and this feature will cost significantly less, no matter who makes it.

With the leaked iphone, it gives people a 'tester' of what's to come, and you got the thoughts of wanting one - what would you do if you found one ~> ooh get one now at ANY cost!!

Don't be a must have - Be a glad I waited.
You won't regret it after the initial oh yeah!