Gamespot stream brought up a good point. Why is $500 - $600 ipad acceptable yet a console at the same price point offering more functionality is not?
Many, many people can't afford ipads either and they are obscenely overpriced. Ipads have many more uses, and are competing with PCs rather than consoles. Apple can charge more as they have millions of idiotic rich fans. Ipads are better value, really.
Anyway consoles have traditionally been for the common man, somewhat, they've not been the preserve of rich people. This console will be, at least in the UK and Europe. They're aiming this at AV fans rather than gamers, it seems.