Regarding arguments 1 and 3, non-retina screens are still being produced for the iPhone 3GS. That's Apple's current low-tier product which is often sold for 99

Regarding arguments 1 and 3, non-retina screens are still being produced for the iPhone 3GS. That's Apple's current low-tier product which is often sold for 99 cents with with 2 or 3 year contracts. I don't see why they wouldn't introduce a lower-tier device in tablets like they have in phones. It's the same idea, running older hardware, just in a smaller form factor. Most people don't want to pay iPad prices for a tablet, and the $100-$250 market is ripe.