You are wrong. Suppose you are payed $350/month. Larger part of that money are gone spent for apartments and food. Still people do purchase $350 tablets because it's entertainment they can afford (they buy it for few years and don't change it to newer model until the one they have is broken/no longer fast enough for new software). Now would you like to buy movie and games for $5 or you will download them by clicking links on local forum thread?