Originally Posted by shadenfroh
I don't see how a card slot would jack the price up much.
Manufacturing costs are just the start. Support costs have to be factored in alsoŚlots of issues come up with removable storage.
I expect another reason is that they want to leave an option to add essentially identical models in the future with different memory specs to achieve different price points and profit margins, like Apple does with iPod Touch. But they want to sell the #*$& out of this one first.