As for the crappy "purchasing power" argument for the SoC : let me point out that the Zune of all things has a better processor. If you look at hacker friendly devices, a game console called called "Wiz" from a small firm will be selling at $180 and has roughly a similar processor. Also "OpenPandora" console from a small firm has a OMAP3 and will sell for $330. Now you want me to believe that a $400 phone cannot spend $10 more on the SoC? When running generic apps is what it was built for??

An OMAP3 sells for somewhere around $50 in quantity (I think).