What's sad is that people are paying $1,200- for it. If Apple were selling the 13" MBP for $899 and increasing their market share-which they would-then it would be OK, even though they were making a healthy profit margin. What they are selling it for is more akin to bloodsucking than profiting through better innovation.
I don't know what can be done about it though. Apple has more cash for R&D than any other PC manufacturer, and no other company is going to sink any serious cash into moving laptops forward in a big way. They are all just assembling from off-the-shelf parts. Just look at the touch pads on Windows machines. They are all alike and have been since they appeared.
Apple has their niche and as long as they don't move forward to become a lot more than that no Windows PC manufacturer is going to worry about true innovation.