I think I smell the reek of death. Now if the exhume was only say, $300 for the wifi only unit, they'd have something. Even $400 would be too much for what consumers will call a "generic iPad" as even the hard-up could find another $99 if they already had $400 to drop on a toy like a tablet.
Exhume indeed. This may illustrate to clever marketers that for a lot of people, the obvious and seemingly correct pronunciation for a clever brand might bite them. My grandpa called Qwest "queue west" as they made him wait for a customer service agent too long for his liking. He was onto something.