HP Touchpad Down To $399 - Could Tablets Be NetBook 2.0? Amazon's Tablets To Add More Pricing Pressure In Race To The Bottom

I wonder if the tablets outside of Apple will be another race to the bottom with Apple occupying the $500 and above market while the rest of the pack enters the race to the bottom. The Touchpad has been out barely a month and HP has already dropped the 16 GB model by $100.

What does this mean? Has HP's Touchpad already failed to catch on? What does this mean for the tablet market in general? Perhaps Android 4 will slow down the pricing pressures while Apple could conceivably enter the sub-$500 price point with a cheaper iPad 2 that has less memory.

More analysis/speculations at Clouding Around.