This is what other devices in this category are going for:

Note the very similar pricing. Then note this one is an Atom machine, has a lower res screen, less RAM, and USB 2 instead of 3. Search around... there's plenty of other comparable devices out there, and very few can compare on price, features and specs. Is this high for many? Yep, but those people are going to be fine with the $350-500 RT and Atom based tablets, including the Surface. In the class where the Surface Pro fits, $900-1100 is very competitive in pricing.