I agree completely: this "estimation" of a "sweet spot" (going up to as high as 800 dollars!) certainly falsifies those rumors (most certainly launched from m$ itself). Come on, people: even for a rich market such is USA's, it just cannot be a ''sweet spot'' (but rather a hot spot, red hot). Market is full of nice functioning tablets sold at under 300$. Very cynical statement of Mr. Ballmer - it just goes to show how detached from reality people can get when they don't have to worry about paying the rent, telephone bill etc. Do we have to remind dear Steve that we (but who are "we"?) live in the era of a hardship, downward going economy...? But, than again, isn't it just like m$oft? Poor hardware - now it belongs with the endangered species...

When it comes to tablets I actually believe Amazon, and to a lesser extent Google with the Nexus 7, has the right idea. It's essentially the fourth device for a lot of people, and a telephony-less smartphone in an inconvenient form factor for others. It can't cost more than 100-200 USD if it's expected to sell in numbers.