I think if iOS 5 was out, then people might think other wise since software wise they should be on the same level. But right now iPad 2 is the must have.
I'm just reporting what buyers are winding up buying them from. Of course there are exceptions both ways (I heard of a 32gb go for $250) but that's where the market is right now.
On craigslist, the rule of the game is that sellers will always overprice the product and buyers will always underbid - pure capitalism will bring the price to the market value at the time. As many have stated, given that there is such a supply/demand mismatch right now, the market value is being reflected as such.