I just bought a capacitive screen multi touch android tablet for less than $200 from dealextreme for some prototype work I'm doing. There's no reason to assume that the iPad will continue to be comparatively cheaper a year or two out.

When everyone has the production ironed out, android tablets will drop, and apple will keep selling iPads for a premium price.

I love apple, but the tablet will never spread effectively if it costs $500 or more.