I think that the largest problem with the Tab isn't it's price, it's that there isn't a low-cost entry version that makes it *seem* as though the price is less.

Although at $649US it is comparable to a similarly spec'd iPad, most people will claim that the iPad is $499 because it *starts* at $499. The price rises steeply from there, but strangely, this is almost wholly ignored.

It's a psychological thing.