"Meanwhile, Apple is getting ready to announce an entirely new iteration of its iPhone in three weeks — the tablet — that will likely make every other player in the market look like a laggard — again."
The tablet is aimed at a different niche than the "mobile phone/mp3 player" space. Very few are going to buy a tablet and ditch their phone.
"Why didn’t Google subsidize the Nexus One so it was half the price of an iPhone, instead of the same price?"
Perhaps because they like making money?