I'm sure adding $100 to a macbook isn't going to make or break apple. I'm not expecting 2048 levels of pressure, 512 or even 256 is fine and keeps cost down.
The problem here is many of us were expecting a tablet, like a tablet PC, running OS X and could even be docked to a base with USB, Video, Mouse, Keyboard, etc... and that's why people were expecting a price of 1000+
I have a Macbook pro, and an iPhone, what reason would anyone that has both need to have an ipad for, it does nothing more then either of the 2, it's simply a device to make Apple and those they partner with more money, locking everyone into a DRM format for books, music, video, etc. At least with a full OS you can use other formats, with the ipad you are subject to the powers that be at apple to approve what can and can not be installed on your ipad, unless of course someone jailbrakes the ipad but that's beyond the point.
Sure the price isn't bad, but it doesn't replace or fill any need besides 'being cool' for many users. It's too large to carry causally, and not powerful enough and to limited to just bring in place of a laptop.
Imagine a 10"-12" macbook air with a flip screen even if just using a ipad capacitive touch screen for 1200, and tell me that wouldn't sell. Capable of doing anything any other mac can, yet still being small enough and powerful enough to take anywhere.
Apple is usually a master at wowing the rest of the world, this just dosen't wow after they already made the iphone, which is smaller, thinner, lighter, has a camera and video, and is also a phone of course, that wowed people by all it can do, the ipad just makes people say "It's a big iphone, without the phone."
Anyhow I'm off my soapbox now.