You're all forgetting why the Surface is "so expensive"
I'm sick of seeing comments which suggest that the Surface is "too expensive", or "should be cheaper".
1) OEM's will and are filling the gaps - above and below, and they will carry on doing so, as it is in their interests to target all demographics, at all price points.
2) It's not going to be/never was intended to be a mass produced product, available en-mass. This is business 101. Not every product is going to either be sold, or sell in volume. Sometimes, products don't need to or are not intended to be sold in this way. The Surface is a clear example of this, Microsoft themselves have intentionally limited launch markets and distribution channels.
3) Android devices are cheaper because of lower R&D costs. There are over 200 custom made parts within the Surface. It was also in development for three years. These base costs need to be covered and in combination with 2, mean unless MS want to sell this at a loss (or greater than the current loss if there is one), prices will be at this level.
4) Branding - price and perception. This is simple, it doesn't really need explaining.
5) Demand - If MS creates too much demand for the Surface they might not be able to meet it. This is key, MS might not have the production and distribution and support capability to serve customers.
6) It's not actually THAT expensive. The Pro is going to be Mac Book Air and Ultra Book class priced and the RT isn't that much more expensive than the iPad - you also get the keyboard and if you're buying it then, what you would perceive as an arguably better product.