So what would a 10" touch screen cost to produce? $50? Fine. Sell it for $150. A 10" tablet can still cost in the $600 - $800 range.
It CAN, but you have to factor in the internal function, development costs, distributors, lawyers, guy that serves coffee costs, etc etc etc. The price will be dependent on the internal function too.
Who offers a 10" multi-touch screen at this time, though? I wouldn't expect it to be something inexpensive to make or make function at this time. Maybe in 3 years it will be cheaper.
Apple--never expect low prices, never.
Name one time Apple released a product that you did a back flip over because the price was so low you felt you were robbing them blind.
Name one time Apple released a product that you did a back flip over because the price was so fair you felt gratified by good deal.
Name one time Apple released a product that you did a back flip over because the price was so unexpectedly high but you HAD to buy the device because it was time saving, innovative, shiny, lovely, and sexy.