Yeah. We don't know yet what their screen is or what it cost them. In fact, that information wouldn't be useful anyway: I'm guessing that Michael Arrington might well be able to get one model of any screen he wants for well under $200. But once he's got that screen designed into his product and is trying to contract for 2M of them... well, I'm guessing that Foxconn's sales team is pretty tough, given that they battle guys like Steve Jobs on a regular basis.
Incidentally, that's why we should be happy to see fuzzy photos of prototypes rather than more technical details. If Arrington's suppliers find out that he's committed to using Component X, the cost of producing a unit of Component X will mysteriously rise, like magic. So secrecy and a lack of public details may be a sign of good project management at work.
The question is whether the Techcrunch call for assistance has yielded a master negotiator who can eat Chinese suppliers for lunch. It might have. Silicon Valley has quite a few of them.