Actually, I've rethought my comment a bit and I agree with you. I see the way Apple is behaving now very akin to the early PC wars, when a bunch of platforms were trying to become the dominant one.

These days, the platform war is the tablet form factor, and the iPad is definitely cheaper than anyone really expected. I have yet to see an actual competitor, in terms of price, software, and retail locations.

So sure, it's a land grab right now. But I wouldn't confuse that with true product innovation. They're just taking it step-by-step. And I'm sure the iPad still maintains their margins, although it seems cheaper. (my hypothesis as to why it has no camera, cleaning cloth, included slipcase, etc.)