You can already get a 7" android 4.0 tablet off aliexpress.com for $53, shipping included.
Several have resistive touchscreens, most have modified Androids that don't have Play store and don't install what you want, most have quality issues (for example my coworkers' has wifi connectivity problems), bad battery life, and overall terrible experience.
I'll gladly pay double to ensure good quality and a good experience.
Edit: aliexpress is part of alibaba (which is part-owned by Yahoo IIRC), so it's very likely what you get is similar to what I'm describing.
Edit2: browsing, it seems most do come with capacitive touchscreens now. I don't see any with free shipping, but I'm not in the U.S.