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As things get "better", there is not a one-to-one price increase per feature. The improvements come in smaller and smaller increments as you approach the higher end, and the price per increment shoots sky high. This skyrocketing of price is not typically due to technical issues. I highly doubt it costs that much more for a 7" screen vs. a 6" screen, all other things being equal. However, that fairly minor difference in screen size is highly prized by some, and inconsequential to others. The ones who prize it will pay serious money to get it. So the manufacturers charge serious money. Because they can. They're not stupid. They know how to make profits. After most everybody who needs a 7" screen has already bought one, the manufactures will come up with some new enticement to charge premium prices, and you'll be able to buy a 7" screened device for a song.
Look at TV's. The current rage is 4k, even though the human eye can't tell the difference between 4k and 1080 - unless your couch is two feet in front of your 70" TV. 1080 sets used to be expensive. Now they're a dime a dozen. Even 4k is beginning to settle down, and 8k is starting to be pushed. That will be good for when your nose touches the TV screen while sitting on your couch. Hello 16k! For when the human nose has flattened itself to an even smaller dimension due to being pressed against the TV screen. Human eyes are only SO good. Increasing screen resolution to ridiculous amounts does not make your eyes any better.
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