I think some of you are reading way too much into what Apple has done in the past, such as the typical 100 dollar price drop.
Things like the HP touchpad, the kindle fire and other lower priced tablets have created a big market for cheaper devices.
To combat this, I've read a lot of speculation that they will drop their Ipad 2 to 299.
I have no idea if they actually will or not, but the market is completely different than it was when the Ipad2 was released. There is a need for a low-end Ipad, and they would sell them by the truckload.