After looking at the prices of other high-end phones, I think Nokia has set the price relatively low.

The N900 is packed to the hilt with technology, comes with 32GB included, has a modern processor, and yet is selling for less than older less-capable devices such as the HTC Touch HD, and for almost the same price as the less advanced N97 and N97 mini.

So yes, I think the initial cost of the device really has been reduced to all. Perhaps we are getting that pricing in return for the N900 being step 4 of 5.

From mobilephonesdirect.co.uk:

N900 32GB £450
N97 32GB £430
Nokia N97 mini 8GB £448
HTC Touch Pro 2 0.5GB £490
HTC HD2 0.5GB £495
HTC Touch HD 0.5GB £480