I can really feel the irony here - one of the biggest gripes of Apple critics was the price of their products. It'll be interesting to see if things have turned around.
The iPod was the first wave of Apple devices where the price was actually cheaper than the competition. Then that trend continued with the MacBook Airs and iPads. Even the iMacs/MacBooks are very competitive.
Apple notoriously only sold the shuffle under $100 while many competitors offered devices with dramatically more space and screens for under $100.
By the 2007 era and the beginning of keeping your music on your phone, it would have been utterly disingenuous to call the iPod "cheap" or anything close to it.