And if the cheapie does the job, why not buy that instead of spunking out loads of money on something expensive? Vendors are going to have to get used to the idea that people are not going to spend $3,000 on a laptop, plus $1,000 on a phone, and then another $1,000 on a tablet, and then run out and do it all over again in 2 years time when the new models come out. There's a limit to how much money people have to spend and they have other things to spend it on than just another electronic gadget.
For most people who have one, a tablet fills the pretty simple role of letting them read the news or check the weather forecast, or whatever off the Internet would having to fire up the PC. You can do that quite nicely for well under $200.
Now this is the point where someone, usually posting as AC, will chime in with his esoteric use case requiring an eyewateringly expensive tablet. That's fine, but as the market share figures show, that isn't what most people want. It may be what you want, but what you want is evidently pretty irrelevant to what is actually going to happen in the marketplace.