Pricing is also signaling, so you have to be careful undercutting someone if your story is "we have a better product". If the TouchPad is destined for failure,

Pricing is also signaling, so you have to be careful undercutting someone if your story is "we have a better product". If the TouchPad is destined for failure, undercutting Apple isn't going to prevent that. The market's already said "$499 is good for a tablet" so it's smart of them to listen to that.