IMHO, The $599 price to encourage buyers to opt for the higher profit phones, but also allow for carriers and retailers to mark the phone down during sale periods. $100 off down to $499 is an easy button and everyone wins in the profit chain. Even $50 off makes it look palatable. I fully expect this will be the new "free" phone w/ 24 months service from Verizon, T-Mobile, and AT&T. I also don't see this one gaining much traction in Europe... but maybe India?
Lack of magsafe is a non-starter for most people (I assume), but definitely a smart move by Apple to differentiate this product from the "premium" models.