5MP lenses, OMAP3 processors instead of OMAP2... components that costs a few dollars, do they really justify a $300+ price hike?
Not when Nokia are marketing the N900 the way they are...
Android on a sub-$100 phone - if it does pretty much everything the N900 does, how is it that different to the N900?
Android is advancing in leaps and bounds, it has widespread device manufacturer support, and ARM-based CPUs are not expensive and becoming more powerful... once a low-price Android device hits the market it will become more difficult for Nokia to get away with charging N-series-type prices.
But why do you equate low-price with "crapy hardware" - because you've become so accustomed to being ripped of at the high end? The iPhone 3GS has a bill of materials totalling $175. Work it out.