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You're not missing anything. I think they were trying to take advantage (in the negative sense) of the need for larger devices. They claim it's geared for the "business professional", hence the absurd price (in my opinion). Selling for $650 and $800 leaves little doubt that they'll receive few (new) orders. Those who pre-ordered shortly after being able to do so will probably cancel now that the iPad is here and other tablets are on the horizon which will be priced to compete with the iPad. There's still curiosity about the Skiff as well.
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