Because nobody wants to waste money.
It's common sense. Why pay $500.00 for the new iPad when you can get an iPad 2 for $400.00?
Just go by the features:
Retina display: Looked at the screen, it's no better than my laptop screen. It can't play HD videos from YouTube. The term retina is just redundant. If you squint your eyes, you might see something, but other than that, not fascinating.
A5X chip: Quad-core graphics. Um, for what? There's no real graphics intensive games on iOS. So, toss.
iSight camera: Well, it's high definition now, but so is my phone. So would I rather record from a phone or an big picture frame...you decide.
4G: Wi-Fi.
Dictation: If it's not Siri, then why would I want it?
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And that's it. Be smart about it. I cannot justify $500-$800 dollars on this. I will recommend an iPad 2 to anyone who asks.
Buy an iPad 2. It's thinner and lighter.