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You seem to debunk your own argument there. Competitors are struggling to match the current iPad on price so I don't think the iPad is expensive at all by way of comparison.
I believe there's a willingness in the market to pay for a higher-res, higher powered iPad and perhaps some other new...
This could be the opportunity to perhaps create a tiered iPad offering, ala iMac vs Mac Pro. With iPad there's more scope to create a higher end offering, unlike iPhone, where talk of a cut-down, mass-market product just doesn't seem to fit Apple's MO. There could be the mass-market iPad, ie...
Wow, awesome give away TiPB!
I already have an iPad (and love it!), but since you're only able to ship within the US anyway, your give away would be the perfect thank you gift for a best mate living in Vermont who's flying all the way to New Zealand to play the bagpipes at my wedding in March...