Overpriced for whom?
From a consumer's point of view it seems like poor value.
From a corporate customer in the middle of a rollout of ipad2's (or ipod touch 4's) to the field, the price is less important. Apple would no doubt prefer to stop supplying old hardware, but that would annoy the corporates because their IT folks would then have to support two types of hardware (as well old-style dock AND lightning accessories). So instead of cutting off supply abruptly, Apple has priced them to deter further purchase whilst giving corporates some time (and incentive) to figure out a migration plan (to iPad minis?)