I was all up and ready to jump over to the Surface (coming from an ipad2) but that price is just too much for the sacrifice on only being on ARM so will probably end up getting the next ipad in March. For the price of an ipad3 I want a much higher resolution than this offers and was really expecting the base level Surface Pro to be 600-700USD not the top end RT. Guess I just misjudged Microsoft's pricing strategy on wanting to enter a new market.
I think you misjudged how much things cost to make to be honest, you can't get an ultrabook for $700 so you were never going to get the same hardware in a smaller form factor, with a touchscreen AND a digitizer.