The thing about tablets is that the processors don't represent a big of a part of the device's price, being around 25USD wholesale. The price of the RAM, Flash storage, screen, battery, various sensors, antenna and various secondary components are more relevant to the overall pricing.
Based on the Chinese market stratification appears to be possible down to below 100USD
. The Arnova and normal Archos lines have stratified up from there with things like the Notion Ink Adam before you'd reach Apple's price levels. These really haven't been able to create much in the way of market deformation, unlike Amazon's entry into the market which has the potential to wreak havoc on the existing ecosystem.
Of course, I wouldn't mind a massive iPad price cut. Perhaps Apple's next model will be cheaper again.
Since when has Apple shown any interest in being price competitive? Their game has always been using marketing, trying to set themselves up as a premium brand, and using clout to develop and exploit underdeveloped markets while pretending they're actually introducing something novel, ala Ginsu knives. Them moving in is a good thing if you agree with that market being moved up, but history has shown they don't and can't compete in competitive ecosystem and will instead revert to patent trolling to try to remove competitors through specious lawsuits and warped propaganda around them being a "premium" brand.
I'm still trying to figure out how their absolute kludge of a GUI gets lauded, particularly as something user friendly. The average low level user has a tendency to not comprehend that the top bar is a contextual menu bar and that closing the window on the screen doesn't actually close the program, unlike with just about every other GUI ever designed. I got plenty of questions about the stop light buttons when I recently ran a computer labs with Macs, because they're really just not as intuitive as the picturegrams everyone else uses. The Dock has some very limited strengths as an oversized quick access icon cluster but unless a user is really limited in their program usage, they're stuck going to Spotlight or Finder neither of which are intuitive enough in calling out to the average user to not require reminding them they even exist. The kludge of a taskbar analogue forced on the Dock is a less then wonderful compromise for multitasking program management, and the more advanced multitasking features basically require more RTFM time then the average low-level user tends to be interested in.
OS X's interface design is literally still stuck in the 80s, and is a reversion of NeXTSTEP.