I think it points to logically, the tablet market is just plain outside of what people are willing to spend for the products. For the majority of us that don't have them, they are seen as toys still. Perhaps they are, but mine has changed the way I work in my life.
It seems that component pricing is just not where it needs to be at the moment (and definitely wasn't when the TouchPad was designed/built) to hit a target price that the market will bear, -and- make the manufacturer a decent line of profit.
HP took a 50%-ish loss on all the TouchPads. The market price on them, via ebay and amazon and such right now, is slightly below their cost of production, and that's merely 6 months after the fact. It's been pretty consistently about $250 or so for a 32gig that cost HP $320 or thereabouts to manufacture (and that's not even counting assembly, transportation, and all the other expenses that went into it).
Just remember, if not for the super crap camera, we'd have a tablet that hardware wise, would've been in the top 5 on the market, back in July .. and was probably top 3 in the business while it was being put together. Unfortuantely, it's software wasn't ready, and HP-Palm weren't able to adapt to the extremely different market that they found themselves in in July, versus what they thought they were entering 6-8 months prior.
If HP had sold all these units at a slight loss instead of trying to make a 75% margin on it, and not announced their product until say, August, released it a week later, with 3.0.2 or 3.0.3 on it, and several dozens of tablet ready apps, we'd be looking at an entirely different tablet market.