True, but you omit one thing : there are choices to be made before production, that have an impact on the price.
Functionality over price. ED is going to put what he wants in there, and yes, price will be a consideration (else he'd just throw the 128GB eMMC in), but it's a balance to be struck, not a serious argument to be had. The arguments will be over the functionality with price being the secondary consideration: 8GB is too small, 32GB is too large, 16GB is just enough, although maybe there's some good arguments that 32GB really is better regardless of price.