95$ is small number when tablet costs $700-800. At the bargain bin 7 inch market that license means 50% higher price.
Well, with the rumored price reduction and considering costs for Android the difference wouldn't be that high. Of course it's higher and you wouldn't see a Windows Asus Memo, but it would still be close enough in price. $400 Asus Transformer vs $470 Asus Transformer running Windows. (esp. when you buy the dock too, you'd have the better notebook with Windows)
Office has pretty small value in RT. People who are willing to only pay little won't care and will use free alternatives. While people who recognize value of Office are likely willing to pay more and get full blown Windows 8 machine. The ammount of people who don't fit into either one of those groups is pretty small.
I think there are enough people who would be interested in Office. Would be especially compelling for students and in schools. At college I see a lot of students use tablets and Office would be great for that.
So you will have two tablets that look the same..only one will be noticably cheaper and will actually have decent apps for it. Why would anyone get Windows RT tablet when they can get cheaper and more supported Android one with exactly the same hardware?
Without Windows RT things aren't really better. The released Windows tablets are more expensive than the Android ones (and not just by $70) and OEMs seemingly don't put that much effort into designing and selling them. The ones they want to sell and advertise are things like Galaxy tabs, Xperia Zs, ...
Getting Windows versions of the same devices would bring Windows closer in quality, price, and exposure.
And if Android is not only cheaper, but also better, then Windows tablets don't stand a chance anyway. x86 apps on the desktop won't make Atom tablets that much more compelling either.
Samsung did what you suggest in their phone line up with WP and nobody cared, while people bought Android versions like crazy.
The Galaxy brand is ridiculously strong. Hard to compete with that. Besides, phones like the Ativ S were basically sent to die.
HTC's 8X would be a better comparison and I don't know how that and the One X sold.
But the alternative to Samsung and HTC not reusing Android phones for Windows Phone is basically not making Windows Phones at all. So even in this case I'm all for releasing multiple versions of one phone.
That's a big problem. Because people like those might feel cheated when they buy Windows RT device and realize it's not real Windows and they can't run all their old software on it. The problem is that few people know the difference between RT and Windows 8. RT has been absolute diseaster when it comes to marketing. All it did was confuse people and scare them away from buying any Windows 8 devices.
People like that don't need RT device, all of that can be done on much cheaper Android devices. And for everybody else RT won't be enough
The only way for RT devices to compete on price would be for Microsoft to stop charching for it. Untill they do, WinRT has no future.
The way you say that, the only reason for anyone to ever get a Windows tablet is x86 software. I think for the vast majority of people who buy tablets (nearly everyone except business users and those who'd consider the Ultrabook-level tablets) x86 applications don't really factor into the consideration.
If that's the case then Windows 8 doesn't stand any chance whatsoever. It can't possibly compete on price or apps. iOS and Android will catch up in functionality before Windows catches up in apps.