Mr Nihilism, my current-generation iPad was bought in December for about $400 plus tax. Target ran a $75 gift card promotion plus 5% off $500 price using their Red card.
You cannot seriously compare the current iPad to any Android tablet sold for $250 today. That is akin to saying a Honda Civic is comparable to a BMW 3-series or whatever similar car model spread you prefer.
It is much fairer to compare a Nexus 10 tablet that sells for $400 (and comes with more memory). Some cost savings, very desirable tablet, but not as much savings as you suggest when we're talking similar hardware.