LCD screens are like, $100, a mouse is $10-$20 new and low-end keyboards are $10-$30. At that combined price, why does it matter if the computer is $25 or $5?
And if one is going to outlay the 150 bucks in peripherals, they might as well spend a bit more than $5 on the computer to get a significantly better computing experience.
Is there anything else going on here? Do they have a different approach that I'm not getting? It feels like, yeah, Moore's law is great and computers are cheap, but once RPi got to around or <$50 (which it did with the first version anyway), the computer was already cheaper than everything you needed to plug in to it.