I think that, from major manufacturers, they do not want to be seen as providing something that is inferior or a step backward to the Old Jobsian Fondleslab. So all aspects need to be on a par if not better.
There are a multitude of 7inch Wifi only Android tablets coming out of China, and in some places rebadged and sold for less than $200. I'm tempted by the
Nationite MIDnite, but as I have a netbook and a Galaxy S there is no justification for it

.