Not entirely true, most Android phones are only around $600, not $800. I was just comparing the Nexus 5 at Best Buy yesterday with my HTC One. The 32GB N5 is $400. The 32GB One is $150 right now with contract and only $550 off contract. I think quite a lot of people wouldn't mind the contract or would pay the $150 extra for the One. The One has better build quality, display, speakers, UI, no on screen buttons and it comes with some solid headphones/earbuds. The only advantage I could find with the N5 was the Snapdragon 800 vs the 600 in my One, but thats just on paper. Launching apps, loading websites, streaming movies all were done about the same speed on both phones. I think the only real advantage with the N5 is for someone who wants stock Android, but then again, you can root and get stock Android on the One as well.
I'd agree with that. Although, when the One was initially released, off contract price was $600. The Nexus 5 when released was also available for $350 should you choose that. If we're comparing prices right now. For an extra $30, you can have a Nexus 5 AND Nexus 7 for the price of the HTC One.