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I was hoping for a cheaper board.

Even if the Raspberry Pi foundation were to just take the old model A and drop the analog I/O ports and LED lights - with their economies of scale and the natural decrease in chip prices, I'm guessing they could ship a ~20$ board.

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There is no analog I/O on the Raspberry Pi. You can do PWM output on a pin, but otherwise no analog input or output. There really isn't much to drop from the model A--it's just the processor and supporting passive components with some headers, connectors, etc.

edit: I guess you could drop the analog video and sound output, but that would probably just save a few cents for the connectors.

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