Those tablets do not exist. The tablets are either as or more expensive, or are not as good.
But don't take my word for it....
Amazing how things are dynamic and not static. If it were a year ago, I would agree. But there are quite a few compelling offerings out there in the Android-verse, for $129-$199. I wouldn't have believed it either if I hadn't purchased one myself. I'm not giving my son a $500+ piece of tech to drop, lose, smash, forget, etc... So I went with an inexpensive android tablet for $129 and the things is really nice. Solid build, great battery life, apps he wants, ACTIVE OS updates from the manufacturer, etc...
The days of moderately inexpensive Android tablets being total junk are beginning to come to an end. Don't get me wrong, pretty much everything $99 and below is garbage, and you can find LOTS of junk in the sub $199 as well. But if you do your homework, you can score a real winner.
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OK, I'll bite...
3) Your suggestion that Apple's gimps old hardware makes zero sense. The iPad 2 that you could buy today is the exact same one available two years ago. Apple didn't lessen RAM or change out the processor. Now, Apple does build new OSes to compliment the newest hardware, yes, but that is how you make technological progress rather than designing for the least common denominator.
The iPad2 is the exception, not the rule. The limiting factor in many iDevices, is the RAM.