Why would it be impressive? They don't to include a number of things that they have to include in the iPod touch, such as a screen, battery, camera, etc. I'd bet somebody can do better for less. We do pay the Apple tax.
I know. I edited my post that you were replying to before I posted what I posted right now. EDIT: I thought an Apple TV would have WAY MORE space than just 8GB. I know this stops me from buying this product. How much space did the previous generation hold?
If it's the same exact thing as the iPad without the screen and battery, why is the iPad so much more expensive? I mean, flash memory is almost $1-$2 per GB, and I'm sure the battery and screen don't make up for the near $350-$600 extra... THEN there's the 3G models, which just add the antenna wire... :-/ Amazed...
The first generation came in 40GB, then 160GB. However, I like my first generation because I can buy and rent content and store dozens of movies on it without turning on a computer. The Apple TV was made to get one's content onto the one's television, and I think the second generation provides a cheap way of doing so.. I just wish Airplay was extended to the first generation.
Because it has the 'i' instead of Apple. That's why the iMac is so expensive. /sarcasm Apple tax, probably, although there may be a significantly less cost in the actual manufactering process (i.e. assembling it, etc.).
I'm sure the 9.7" capacitive multitouch touchscreens and 10 hour batteries could possibly cost quite a lot. But yeah they're probably just trying to make a profit on it. Hoping next year's iPad will be cheaper.
The reason it doesn't cost as much is because it is lacking all of the sensors like accelerometer, lighe sensors, and touch screen. Plus it is also lacking the battery.
The touch screen is always the most expensive parts, and take away a bunch of other stuff and Apple are still easily making a profit. It's just not Apple to sell anything at a loss.