My take is that gp talks about equivalent to iPod touch, but I cannot really see how Archos are in this category. The smaller ones have resistive touchscreens with lousy resolution, the bigger ones are different form factor, pricier and no Android market :(
This is not something that can be easily compared to the iPad. Yes it is cheaper, but the two devices aren't the same. The three biggest (and easily measured) differences are the screen size, screen resolution, and storage. I can't find a price for the Achos 10.1, but please feel free to link it if you have it.
no one else can afford to match the iPad’s price with a comparably sized touchscreen display
See above and below.
iPods, iPhones, iPads. Across all of them, Apple’s prices are either comparable, or lower, than their competition.
The other Archos devices available for sale are indeed cheaper, but also fail to have comparable specs to the Apple devices.
Engadget quoted $300 for the 10" but it seems to have come out a more expensive - The 8gb is on the shelves in singapore for S$499 which is about $390, and the 16gb for S$599. Other commenters should note that these devices are in retail (though they are just arriving).
I'm not trying to convince anyone to buy an archos tablet - I'm sure not in the market for one. I just don't get how it doesn't contradict "even putting quality aside, competitors can’t match Apple’s prices".
It doesn't contradict "even putting quality aside, competitors can’t match Apple’s prices" because competing on price means offering something that is essentially the same for a lower price. The iPad isn't comparable to either the Archos 7" or 10" tablets.
You're confusing competition with cloning. Look at the products the article lists as iPhone competitors - the galaxy, the desire, the incredible and the nexus one. It would seem like your standard for competition would discard them all.