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An i5 @ 2.2 GHz w/ 4 GB of RAM starting at $1649 or an i7 @ 3.0 GHz w/ 4 GB of RAM starting at $1849!? Wow, good luck selling those.

Yep.

I paid $170 (in UK money) for a 2.4GHz i5 520M X201 with 4Gb of RAM...