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It very well could be $400 with the necessary accessories some will buy. But if you compare the specs and abilities (and the fact it is open-source! that's worth a lot!) with other devices, you'll find the price is reasonable.
What are the specs? Could someone point me to a spec sheet so I can see if what this guy says makes any sense? Thanks. I'd hate to see people defending the price of a system for which they do not know the specs. I'd also hate to see people throwing out price tags for a system of which they have not created, have no actual support for (other than forum rumblings), and can't provide specs for (and by specs I don't mean "it will have 2 analog joysticks, and a 800x600 screen! - will play psx at full speed and maybe n64 too if dev's work hard enough!" seriously all the specs i've read are riddled with "maybes, shoulds, and probably's"). And where is the company web page? I'd like to do some research on the folks trying to sell me a 400 dollar handheld so that i am at least aware that it is an organization with some credibility and not just some guy with an idea (as great as guys with ideas are, they need an organization behind them to provide their customers with real support, unless you are shooting for sub-gph support here) . So far I have been able to find pictures and listings of various electronics components like an LCD and a gpu, but no actual form. So, we are, as of now, investing in a hypothetical system that is the amalgamation of various component parts researched, but not tested with each other, and never arranged together in a working manner. Sorry, but it all just seems very unrealistic to me to think that some guys from an open source handheld board have the prior experience and business savy needed to start something as demanding as this (ie. thousands of customers). That's just my 2 cents.
I must admit though, the specs of the system that I have read from the bluwiki seem well informed (I dig the powervr choice), time will tell if they are actually able to pull this off. And don't get me wrong, I would love for this system to succeed, and will most likely purchase one if it does, i just have some unresolved skepticism about the feasibility of this actually reaching realization.