Well, it looks like HP has decided that it can compete with the mainstream tablet leaders (read: Apple, and possibly Samsung) on operating system and price. The TouchPad, which recently received an update which addressed basically every major complaint reviewers had, is now priced at $399 USD for the 16GB model, effective immediately. This undercuts the iPad 2′s 16GB, as well as most Honeycomb-based tablets, by about $100 dollars.
Considering that the lag issues were largely fixed in the update on August 1st, I’d say that this makes for a fantastic deal. The only element lacking from HP’s tablet is the hardware, which is more comparable to the iPad and Motorola Xoom in terms of size and weight. Well, except for the lack of apps, which HP is promising should be fixed soon, as they use their massive “scale” to ram webOS down the throats of developers.
One other point: this move might force a price war among non-iPad tablets, which would only be a huge boon to consumers.