Obviously the nexus 4 is a good deal, and if we see more android phones with those specs selling for those prices, we can begin to call iPhones overpriced (I.e. google isn't just selling these phones at cost). Still, there are plenty of head on reviews that can't make up their mind which one is better even with the huge price delta.

I haven't actually seen any nexus 4s for sale yet in my market (china) beyond a few smuggled in. It will be interesting to see what happens then.