Battery life would be adversly affected by the fact that the display would require more electricity to drive it (fact of life: low res. screens use less power than same size higher res. screens), but it would also require a rather powerful graphics processor to display fluid images at the proposed resolution. Unless you are cool with Apple adding a much larger battery.
And before you go slagging off someone for makeing an alternative to your oversimplified analysis, what do you think makes more sense - cost marginally increasing in a linear fashion (as you propose) or exponentially (as suggested by others)? Because it it were the former, then why do we not see a slew of proposed tablets from other manufacturers with "Retina" displays?
This is why Apple would simply use the multi-core version of the PowerVR currently inside the iPad, it is a product that the makers of the chip has ready for production in devices right now.
Something having more pixels does not mean it takes up more power. If there is more areas for a light diode to emit through then yes that would take up much more power. Why don't others do it though? I'm not sure why is it that the company I work for is the only company that knows how to bend chrome at a 30 degree angle? Why doesn't everyone do it? There is a such thing as trade secrets.
For someone who can't figure out why a higher resolution display with a beefed up GPU doesn't affect battery usage you're suddenly an authority on everything, aren't you? iSuppli is a guesstimate, they know very little about actual costs. And your thinking that Apple's costs are plummeting is similarly unfounded. The dollar has been dropping since the summer so supplier costs are up, or, at best, flat. Foxconn also raised prices in October.
The bottom line is your methodology of pro-rating a guesstimate of the iPhone's screen pricing to make assumptions about iPad pricing is deeply flawed.
Everything you say about me is incredibly true however, instead of believing that technology halts a year ago, I know that as has always been the case this isn't true, and Apple will if they haven't already find a cost effective way to make a "Retina Display" or at the very least trick people into thinking it is one.
326 pixels per inch would be an incredible feat wouldn't it ib? However if you took it down to around 250 ppi (right around where the human eye is just able to see the actual pixels) and still slap a Retina Display label on it people would still eat it up. Also have to consider other tablets out there are (or are) going to be doing 1080P video at 3' less space than the iPad. How the hell are they doing that? With magic and Steve Jobs tears?