You really want to know why, huh? Okay, fine, here’s why? Apple and Amazon have completely opposite business plans. Amazon sells the Kindle Fire at break-even or a small loss, because their primary goal is to sell eBooks, music, movies and Amazon Prime subscriptions. Apple sells the iPad at a huge markup, and they make relatively little on the iTunes and App stores.
2012 could bring us a cheaper iPad (probably not smaller) but by cheaper I’m thinking $449, $399 at best. And then only if Apple can bring down the component costs considerably. Which could happen- the RAM market is cratering right now.