See. I think your wrong. It depends on what you want the device for. In terms of typing, I was surpised how much smoother it was than an actual Android device. I notice a significant lag on typing with my Transformer ( rooted and overclocked w/ third party keyboard). The only major factor in lowering the price is games.
If the buyer merely wishes to browse the web and watch movies...which I'm guessing is 95% of buyers, it is equal or surpasses android devices. If a buyer really wants Android, I have no doubt in my mind that Android will be ported for consumers.
Imo it was a stupid move for HP to have a firesale of this device. The management of HP need replaced imo. HP could've easily lowered the price to $300 or even $200 and they would've made a lot more money. Nothing wrong with the software at all.
No, that would not have made too much sense, either. Sure, they might have sold a few more units, but it wouldn't have helped them liquidate their assets as quickly, if at all. The hardware itself cost a bit more than $300, so they'd presumably only break even if it actually had some following. However, that would've been unlikely, and they would have still lost money on each device sold.