This is quite an exaggeration. At $500, it *would* fly off the shelf. The media would be over the moon about the insane amount of tech Apple has managed to cram into such an affordable package. Zuck in shambles instead of smug. I know I would get one just to watch movies. Everything else would be the icing on the cake.
Media might hype it up like that, but even at that price I believe actual consumers would still feel not like it's a must-have, unless they don't own a computer at all. Would they be more inclined to buy it at that price than at $3500? Yes. Would it be a smash hit? I doubt it. But assuming that the same exact AVP as currently exists does fly off the shelves at $500, I think the people who bought them would probably not end up using them very much.
If I was buying something primarily for watching movies, I'd rather get a 65" 4K TV for $300 to $500.