Wow, hadn't heard about the Kindle dropping price too. Really, they had no choice but to do this. $149 at the highest should be the target for these guys in the future, but if the iPad base price doesn't dip below $499, they should be okay with these new prices.
B&N are really smart to get a WiFi-only version out there. For some people, 3G isn't necessary, and $149 should sell quite a few of those things.
...I wonder if that's the least expensive Android device on the market (unsubsidized)...
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Matt