It's a phone. The idea is that part of the price will be subsidized by carriers.
Since technically it is a phone an unsubsidized price of $699 sounds right in line with the iPhone or HTC. However I do think that it is unfortunate that we won't have an option without 3g plan (ala n810 senario). As much as I would love to get back on board with a new Nokia tablet, Ian not going to get onboard with a 2year tmoble contract as I already have a year left with AT&T.