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Is anyone still producing 6502 processors today? Is there any price advantage to using such an venerable and well-known design today?

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Yes, Western Design Center is selling the 65C02 in the classic 40-pin DIP package for about $5 a pop.

The last time I checked, which admittedly was almost 10 years ago, microcontrollers with embedded 6502 cores were quite popular with chinese toy manufacturers.

You reminded me of the Playpower Foundation that is designing a $10 6502-based "TV-computer" for distributing educational games to developing countries. This is cool, but I can't help but think that Moore's Law will deliver a cheap Android device.

Is there an Android device cheaper than the Raspberry Pi?

http://playpower.org/

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